Deutsche Bank Upgrades China Mobile (CHL) to Buy

Deutsche Bank upgraded China Mobile (NYSE: CHL) from Hold to Buy.

Analyst Peter Milliken said, "We upgrade to BUY, seeing 30% upside, seeing value and improved newsflow, such as: 1) Market consolidation should drive pricing power, while regulatory intervention appears to be receding, providing potential for revenue-led earnings surprise; 2) We expect the dividend pay-out ratio to jump to 50%, driving a 3.8% DY in 2016, and a special dividend possible the following year, 3) 4G leadership likely to continue given its network quality and competitive pricing, and 4) Valuation is one standard deviation cheap on EV/EBITDA vs. its 10-year range, while most Asian telcos are at median valuations or above."

For an analyst ratings summary and ratings history on China Mobile click here. For more ratings news on China Mobile click here.

Shares of China Mobile closed at $50.66 yesterday.

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