[ET Net News Agency, 28 November 2019] Goldman Sachs lowered its target price for China
Telecom (CT)(00728) to HK$4 from HK$5 and maintained its "buy" rating.
The research house cut its 2019-2021 EPS forecasts by 8%-31% and raised capex estimates
by 9%. It said CT is currently trading at trough 12m forward EV/EBITDA. Goldman believes
further monthly revenue recovery should lead to share price re-rating.
Goldman raised its 2019-2021 5G base station forecasts from 140k/600k/800k to
160k/1mn/1.1mn to reflect its expectations of a faster 5G rollout in China. As a result of
the higher 5G base station assumptions, Goldman raised its wireless capex forecast for the
telco. Specifically, it raised CT's 2020/2021 capex by 9%. (KL)