Not vested. STOCK ALERT - ZTE surges in Hong Kong on brokerage upgrade
HONG KONG (XFN-ASIA) - ZTE Corp, one of China's leading telecommunication equipment makers, was sharply higher after Goldman Sachs upgraded the company's Hong Kong-listed shares to "buy" from "neutral".
At 11.15 am, the stock was trading up 1.50 hkd or 4.61 pct at 34.05 while the Hang Seng index was down 28.96 points or 0.15 pct at 22,995.29.
Goldman also raised its target price on the stock to 43 hkd from 30 hkd on expectations of a surge in orders as capital expenditure on 3G technology by mainland telecom firms will likely increase significantly in the fourth quarter.
Goldman believes that ZTE will benefit most from increased 3G capital expenditure.