UPDATE: JP Morgan Upgrades China Telecom to Overweight

JP Morgan has published a research report on China Telecom Corporation Limited

and upgraded the company from Neutral to Overweight. In the report, JP Morgan wrote, "We upgrade China Telecom (CT) from Neutral to Overweight as: 1) our previous concern about broadband returns has been alleviated by CT's affirmation that it will focus on project returns and expects no near-term regulatory changes; 2) the CDMA acquisition deal turned out to be more earnings-accretive than we expected with a lower interest-bearing consideration; 3) the company is likely to start increasing its dividend payout in 2013 driven by an improving FCF yield." At the time of this writing, China Telecom traded up 8.73 percent from Tuesday's $51.56 closing price.