ZTE's Local Carrier Business Likely Facing Challenging Environment in 2H
Dow Jones10-27 15:17
0717 GMT - Chinese network equipment maker ZTE's local carrier business is likely facing a challenging environment in 2H because of capital-expenditure controls among domestic telecom operators, Nomura analysts say in a note. The analysts expect ZTE's margins to remain pressured due to structural product-mix changes. Still, artificial-intelligence infrastructure investments from China's leading cloud service providers could underpin the company's top-line growth, the analysts say. Nomura maintains its neutral rating and 39.00 Hong Kong dollar target price on ZTE's Hong Kong-listed shares, which rise 3.9% to HK$19.84.
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