HTIL relegates, PCCW raises- Morgan StanleyMorgan Stanley lowered the target price of Hutchison Telecommunications International Ltd (HTIL) to 11.60 hkd from 13.20. Morgan Stanley said “We believe the possibility of a 2 bln usd tax liability over its India asset sale will be an overhang on the share price for the next 12-18 months, irrespective of whether Vodafone wins or the government of India wins the case.” Last year Hutchinson sold its Indian unit to Vodafone. Indian Government is claiming a huge tax bill related to the transaction.
In contrast to this the brokerage raised PCCW Ltd to “overweight” from “equalweight” and lifted the target price to 5.60 hkd from 5.30.
“We expect strong operational momentum on a benign competitive environment in the wireline segment, strong growth at the Pay TV division, and stable performance at the wireless division,” Morgan Stanley said.
