DJ China Tower Poised for Sustainable Gains But Expect 4Q Trough -- Market Talk
0519 GMT - China Tower looks poised for multiyear earnings growth, supported by buoyant demand in internet-of-things, big data and edge computing, Nomura says, maintaining a buy rating on the stock. Although 4Q will likely be another slow quarter for the telecommunications company due to persistent 5G demand weakness, it will likely bottom out in the near term, Nomura says. The Japanese bank says China Tower will still remain a main player in China's 5G supply chain and should benefit from a relatively prudent but sustainable 5G rollout schedule. Nomura cuts its target price to HK$1.63 from HK$2.10. Shares are down 2.3% at HK$1.26.(justina.lee@wsj.com)
(END) Dow Jones Newswires
November 04, 2020 00:19 ET (05:19 GMT)
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