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China Unicom Shares Offer A Recovery Story That Is On Track; Bernstein Says Buy The Dip

Courtesy of Benzinga.

China Unicom Shares Offer A Recovery Story That Is On Track; Bernstein Says Buy The Dip

After a Morgan Stanley downgrade helped send China Unicom (Hong Kong) Limited (ADR) (NYSE: CHU) shares falling over 10 percent last week, Bernstein analyst Chris Lane believes now is the time to buy in on this dip.

“We see no reason for any short-term pessimism. While we agree the stock has run up a lot this year, and it has become a relatively crowded trade (top 30% globally) — the outlook is still good. Even better post the recent correction,” Lane said (see his track record here).

3 Key Takeaways

    1. The 2I2C plans have attracted over 500,000 new customers per month. “More importantly the cost to acquire and service these customers is also very low. With ample spare capacity in the network these subscribers represent incremental service revenue which flows directly to the bottom line,” Lane said.
    2. 4G upgrades have accelerating and Lane expects the average revenue per unit for these customers to rise over the next year.
    3. Mixed ownership reform plans are progressing

    To see the latest exclusive news and updates on China Unicom visit Benzinga Pro.

    Related Links:

    Alibaba Launches Platform To Link US Businesses With 500 Million Chinese Consumers

    9 Most Popular Mobile Apps In China


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    Image Credit: By User:Vmenkov – Own work, CC BY-SA 3.0, via Wikimedia Commons

    Latest Ratings for CHU

    Date Firm Action From To
    Oct 2016 Deutsche Bank Downgrades Buy Hold
    Sep 2016 Goldman Sachs Upgrades Neutral Buy
    Aug 2016 Bernstein Upgrades Market Perform Outperform

    View More Analyst Ratings for CHU


    View the Latest Analyst Ratings

    Posted-In: Bernstein Chris LaneAnalyst Color Analyst Ratings Tech Best of Benzinga


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