BofA Securities: Initiates China Telecom (00728.HK) with "Buy" Rating, Target Price HK$6

Zhito Finance APP has learned that BofA Securities issued a research report stating that it has initiated coverage on China Telecom (00728.HK) with a "Buy" rating and a target price of HK$6, while also initiating coverage on its A-shares (601728.SH) with a "Neutral" rating and a target price of RMB7.2. The bank noted that China Telecom's H-shares are attractively valued, while the A-shares currently trade at a 67% premium to the H-shares, higher than the average 40% over the past year. The bank calculated the H-share target price using the average of discounted cash flow and enterprise value multiples (EV/EBITDA), and derived the A-share target price based on a 40% A/H premium.