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Foreign brokerage cuts target price on two telecom stocks

Foreign brokerage cuts target price on two telecom stocks

Taipei, July 25 (CNA) A European brokerage on Saturday cut its target price on shares of Taiwan's two major telecom operators, citing the fact that they are going ex-dividend, which has sent their share prices lower. The brokerage, whose name cannot be reported under Taiwan's regulations, said in a research note, however, that it was maintaining its "buy" recommendation on shares of Taiwan Mobile Co. and its "neutral" rating on shares of Chunghwa Telecom Co.
Taiwan Mobile and Chunghwa Telecom are set to issue NT$5.6 (US$0.18) and NT$4.9 in cash dividends, respectively, for 2014.
Taiwan Mobile went ex-dividend on June 26, with its reference opening price that day cut by NT$5.6 from the previous closing level to NT$101.90. Chunghwa Telecom went ex-dividend on July 16, with its reference opening price cut by NT$4.9 from the previous closing level to NT$93.30.
On Friday, shares of Taiwan Mobile closed up 1.97 percent at NT$103.50, still shy of the June 25 closing level of NT$107.50. Shares of Chunghwa Telecom ended up 0.10 percent at NT$95.50, below the July 15 closing level of NT$98.20.
The brokerage has lowered its target price on Taiwan Mobile shares to NT$115 from NT$120, and cut its target price on Chunghwa Telecom shares to NT$90 from NT$91.
However, the brokerage raised its forecast for Taiwan Mobile's 2015 earnings per share to NT$5.28 from NT$5.01, citing an improved bottom line in the first half of the year.
The brokerage also adjusted its 2015 forecast for Chunghwa Telecom's EPS to NT$5.04 from NT$4.88, citing optimism toward the company's 4G operations.
The research note did not cover Far EasTone Telecommunications Co., another major telecom operator in Taiwan, which went ex-dividend on June 15 with a cash dividend of NT$3.75.
The top three telecom operators in Taiwan are scheduled to hold their respective investor conferences July 30 to detail their second-quarter results and give third-quarter guidance. (By Esme Jiang and Frances Huang)


Updated : 2021-09-20 11:20 GMT+08:00