Goldman Sachs Downgrades China Telecom (CHA) to Neutral

Goldman Sachs downgraded China Telecom (NYSE: CHA) from Buy to Neutral with a price target of $59.00.

Analyst Donald Lu said, "CT has demonstrated steady earnings growth due to its solid fixed line business and we believe it is likely to be the first FDD-LTE service provider in China as it has indicated it plans to increase capex should it receive an FDD-LTE license. The recently announced tower sharing arrangement should drive a moderate reduction in the time-to-market of CT’s LTE network roll-out and wireless capex. But, we believe that the market has priced in these positive attributes. We are concerned that CT might lose market share to CM when CM’s LTE adoption starts to accelerate in 2H14."

For an analyst ratings summary and ratings history on China Telecom click here. For more ratings news on China Telecom click here.

Shares of China Telecom closed at $52.38 yesterday.

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