Jefferies Cuts Price Targets on AsiaInfo-Linkage (ASIA), Offers FY12 Expectations

Jefferies is maintaining its Buy rating on shares of AsiaInfo-Linkage (NASDAQ: ASIA), while raising its price target from $16 to $10.

The firm forecasts telecom industry Capex will grow by 8 percent year over year while IT and support spending should increase by 11 percent year over year in 2012.

An analyst at Jefferies comments, "We expect more of the total Capex increase will be for 3G outdoor coverage at China Unicom WCDMA side and transmission network at China Mobile Parent and Listco; the upside for AL from telco’s IT spending is limited in our view."

For FY11 and FY12, the firm estimates EPS of $1.55 and $1.51 on $463.3 million and $524.3 million in total sales. Jefferies also lowered its FY13 EPS and sales estimates from $1.89 and a $611 million to $1.71 and $597.8 million.

For an analyst ratings summary and ratings history on AsiaInfo-Linkage click here. For more ratings news on AsiaInfo-Linkage click here.

Shares of AsiaInfo-Linkage closed at $7.96 yesterday.

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