Citigroup raised its target price on China Communications Services Corp Ltd (0552.HK) shares by more than 40 percent to HK$8.70 on Friday, citing better-than-expected revenue growth and expectations for a resumption of telecoms spending.
The firm, an affiliate of fixed-line operator China Telecom (0728.HK) that provides specialised support for telecoms operators, will benefit from an ongoing domestic industry consolidation because of its leading position, Citigroup said.
Citi's new target price translates into a roughly 35 percent rally from the stock's current level of about HK$6.44.