Credit Suisse report maintains mobile target price of 116 yuan

September 8, according to Hong Kong media reports, Credit Suisse published a research report on the Vodafone rights issue of the mobile shares of 6.6 billion U.S. dollars and related equity 3.2%, I believe that the single strategic investors Vodafone withdrawal will not affect the day-to-day operation of the move, but because the size of the placement of more than 50 billion yuan,　　Stock prices will remain under pressure in the next few weeks, but uncertainties in the future are expected to be eliminated.　　Credit Suisse said it reiterated its investment rating for the "run-win City" and the target price of 116 yuan, a potential increase of 40% per cent, referring to the Vodafone rights issue, which does not affect mobile fundamentals, earnings forecasts and valuations.　　Credit Suisse means that mobile is the ability to eliminate the Vodafone allotment, because of the option to use cash to buy back the Vodafone placements, and through the repurchase, in disguise to increase earnings per share, but the bank does not know whether this specific implementation will have technical difficulties. According to Credit Suisse, the earnings forecasts for mobile in 2010 and 2011 respectively were 6.12 and 6.52 yuan, which grew by 6.6% and 6.6% per cent a year, which means that the current price ratio was 11 times times that of 2011.