China Mobile upgraded to "strong buy"

03/20/08 - Davenport & Co.

NEW YORK, March 20 (newratings.com) - Analysts at Davenport & Company upgrade China Mobile Limited (CHL) from "buy" to "strong buy," while raising their estimates for the company. The target price is set to $101.

In a research note published yesterday, the analysts mention that the company has reported its FY07 revenues in-line with and GAAP net income ahead of the estimates. Given that China Mobile is gaining market share from its rivals and the country’s wireless penetration is low, the company is expected to be able to sustain robust growth over a number of years, the analysts say. The FY08 and FY09 GAAP EPS estimates have been raised from $4.04 to $4.13 and from $5.07 to $5.18 respectively.