DJ MARKET TALK: Morgan Pegs Tom Online At Overweight

11/10/06 - Dow Jones Newswires

1213 [Dow Jones] STOCK CALL: Morgan Stanley pegs Tom Online (8282.HK) at Overweight, says its share price, now off 1.4% at HK$1.37, implies China's MVAS industry may stop growing for next five years, or revenue split between Tom, China Mobile (0941.HK) may shift to 50:50 from 85:15, or Tom may halve its market share for next three years before recovery vs its steady market share gain over past two years. "In our view, none of above appears rational. Our DCF-based fair value points to about 35% upside for TOMO's stock." Morgan's concerns include capital market heavily discounting regulatory risks for Chinese MVAS stocks. (SYC)

 
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(END) Dow Jones Newswires

November 09, 2006 23:13 ET (04:13 GMT)

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