China Mobile’s Troubles Haven’t Scared Analysts
The average price target for the next year is more than 30 percent above where the stock currently trades
The list of concerns surrounding China Mobile Ltd.’s outlook continues to grow and as a result it has seen $125 billion shaved off its market value since April 2015. Limited growth potential, Chinese government pressure to reduce rates, looming costs for upgrading its network to 5G and now Monday’s ask by the Trump administration for the Commerce Department to block its 2011 application to set up a business in the U.S. have all helped dampen investor sentiment. Still, pessimism about the company is actually a contrarian position for analysts tracked by Bloomberg, who maintain an average 12-month price target of HK$90.39, a premium of more than 30 percent from current levels.