DJ China Tower May Be Weighed by Lower 5G Spending -- Market Talk
0604 GMT - China Tower Corp. is likely to be weighed by lower 5G infrastructure spending in the next two years, Nomura says, downgrading the stock from buy to neutral, and lowering the target price to HK$1.25 from HK$1.35. The Japanese investment bank expects tower construction demand to slow and telcos to remain prudent regarding their 5G expansion plans. China Tower may have to wait for more visibility on 5G expansion plans of telcos before its tower segment can emerge as an earnings growth driver. Nomura also lowers its 2021-2023 earnings estimates for China Tower by 3.8%-11.8% to factor in higher capex and depreciation costs. Shares are down 2.5% at HK$1.15. (yiwei.wong@wsj.com)
(END) Dow Jones Newswires
April 20, 2021 02:04 ET (06:04 GMT)
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