UPDATE: Credit Suisse Upgrades China Telecom to Outperform

Credit Suisse has published a research report on China Telecom CHA and has upgraded the company from Neutral to Outperform in expectation of an earnings recovery for the stock. In the report, Credit Suisse writes, "Our survey and store visits show that China Telecom's network and retail presence in Tier 2 cities is strong. We revised up our FY12 and FY13 cellular service revenue forecasts for China Telecom by 2.6% and 4.0% respectively. Click here to view full report. On the other hand, we have revised up our cellular cost forecasts, particularly in FY13, when maintenance costs of the newly acquired CDMA network will be higher than initially forecast. Fixed line operating costs are also rising slightly faster than forecast." China Telecom is currently trading up $0.72 from yesterday's $46.57 closing price.