NTT DoCoMo "equal weight," target price reduced

11/25/05 - Morgan Stanley

LONDON, November 25 (newratings.com) - Analysts at Morgan Stanley maintain their "equal weight" rating on NTT DoCoMo (MCN), while reducing their estimates for the company. The target price has been reduced from ¥218,000 to ¥210,000.

In a research note published this morning, the analysts mention that the company's ARPU remains healthy, despite the migration from a 2G to a 3G platform. NTT DoCoMo is making consistent progress in its cost cutting efforts, the analysts say. The dissolution of NTT DoCoMo's capital ties with Dutch telecommunications company, KPN Mobile, would, however, adversely affect the company's FY2005 earnings, Morgan Stanley adds. The operating income estimate for FY2005 has been reduced from ¥867.3 billion to ¥856.7 billion.