China Unicom Hong Kong’s “Neutral” Rating Reaffirmed at Zacks (CHU)
China Unicom Hong Kong (NYSE:CHU)‘s stock had its “neutral” rating reaffirmed by Zacks in a research note issued to investors on Monday. They currently have a $16.00 target price on the stock. Zacks‘s price target suggests a potential upside of 7.38% from the stock’s previous close.
Zacks’ analyst wrote, “We are maintaining our Neutral recommendation on China Unicom. The company registered top and bottom-line growth in the first quarter of 2014 owing to strong contribution from its 3G and broadband businesses. We expect future performance of the company to be aided by the well-performing mobile and broadband business, the expansion of 3G network and strong sales of iPhones. We expect the company to continue with its subscriber addition owing to network expansion, low tariffs and bundled offerings. Further, a speedy rollout of the faster HSPA+ network and collaborations with handset manufacturers could create tailwinds going forward. Nevertheless, we remain concerned about stiff competition, which can affect the company’s ARPU. The carrier continues to lag behind rival China Mobile in 4G investments and subscriber addition. Additionally, access line loss and high operating expenses can be a drag on its profits.”
Separately, analysts at HSBC downgraded shares of China Unicom Hong Kong from a “neutral” rating to an “underweight” rating in a research note on Friday. Two analysts have rated the stock with a sell rating and four have assigned a hold rating to the stock. The stock presently has an average rating of “Hold” and an average target price of $16.00.
China Unicom Hong Kong (NYSE:CHU) traded down 1.26% during mid-day trading on Monday, hitting $14.90. The stock had a trading volume of 203,858 shares. China Unicom Hong Kong has a 52-week low of $11.71 and a 52-week high of $17.19. The stock’s 50-day moving average is $14.49 and its 200-day moving average is $14.13. The company has a market cap of $35.438 billion and a P/E ratio of 19.35.
China Unicom (NYSE:CHU) Limited (China Unicom) is an integrated telecommunications operator in China providing mobile voice and value-added, fixed-line voice and value-added, fixed-line broadband, data communications and other telecommunications services to its customers through two business segments comprised of mobile services and fixed-line services.
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