China Mobile ADR (CHL)

[99Dan]

Zacks Analyst Blog Highlights: China Mobile, China Unicom, Brasil Telecom and Telemar.

February 6, 2008 6:48 AM ET

Here are highlights from Monday's Analyst Blog:

Target $110 on China Mobile

Expansion initiatives by China Mobile CHL into rural regions of China, effective network optimization strategies and the introduction of customized mobile value-added services to suit the needs of different market segments enabled the company to deliver encouraging financial results. China Mobile currently services over 66% of total wireless subscribers in China, far ahead of its closet rival China Unicom CHU.

Given the low level of mobile penetration in this market, there still remains significant growth potential for the company. Furthermore, the Chinese market is expected to see the launch of 3G mobile services (TDSCDMA) before the 2008 Olympics in Beijing. This may open up new sources of revenue.

We therefore reiterate our Buy rating and the same valuation target for China Mobile in line with expectations of continued subscriber retention and launches of new revenue-generating services. We therefore maintain our Buy rating and raised our six-month target price to $110, which is based on a reasonable 35x P/E multiple to our fiscal 2008 earnings estimates, as growth rates in China continue to remain well above the worldwide averages.



http://news.moneycentral.msn.com/ticker/article.aspx?Feed=BW&Date=20080206&ID=8146321&Symbol=CHL