Nomura Securities Downgrades China Mobile (CHL) to Neutral; Valuation Call

Nomura Securities downgraded China Mobile (NYSE: CHL) from Buy to Neutral. PT HKD91.

Analyst, Danny Chu, "We believe the recent rise in China Mobile’s share price was predicated on investors' hopes for a higher earnings payout ratio for FY12, as well as the market’s sudden focus on TD-LTE developments. However, yesterday’s results briefing may disappoint investors hoping for an increased payout ratio. As China Mobile reviews its payout policy on an annual basis, the potential for a higher payout will likely have to wait for another year, at least, by our estimates. With only 7.5% upside potential remaining to our TP, we downgrade our rating."

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 $54.24 yesterday.

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