China Telecom downgraded to "underperform"

Analyst Evan Erlanson of Bear Stearns downgrades China Telecom Corp Ltd (ticker: ZCH) from "peer perform" to "underperform." The target price is set to HK$4.

In a research note published this morning, the analyst mentions that the company's stock appears overvalued at present. China Telecom is vulnerable to any delays in the long-awaited restructuring of China's telecom industry and to the transactional risks related to a potential restructuring, the analyst says.