TEL

Market analyst, UBS has the following market commentary with regards to the Australian telecommunications sector. TLS has performed in-line with the market (ASX200INDXF) ytd (+1.7%) with a nominal re-rating (+8.2%) driven by H107 results and a lack of a competitive response. SGT has underperformed (-8.8%) after outperforming in CYQ406 (+21%) while TEL continues to be plagued by domestic woes despite YPG sale optimism (-10.7%). A draft ACCC cost model prices MTA 50% below current rates (12c); TLS would be a net beneficiary everything else being equal.

Credit Suisse has rated the Telecom Corporation of New Zealand (TEL) stock as Neutral. The result given in the last week was in line with broker expectations and view that ongoing regulatory challenges will continue to weight the on the stock price.

ABN Amro have upgraded their recommendation from Sell to Hold for the Telecom Corporation of New Zealand (TEL) stock with a share price target of NZ$4.15 from NZ$4.20. The broker's upgrade in recommendation reflects the share price now being in line with its valuation, which has been revised to reflect the new regulatory environment the company faces.

Merrill Lynch has rates the Telecom Corporation of New Zealand (TEL) stock as Sell, Low Risk given the double digit share price decline since the NZ government announced a change in the regulatory environment. There is still downside risk apprarent from their mobile operations. Worst case scenario is the DCF valuation of NZ$3.70.

Credit Suisse has rated the Telecom Corporation of New Zealand (TEL) stock as an Upgrade to Neutral. Credit Suisse has previously had an Underperform rating following uncertainties over the NZ regulatory environment. On the basis of a 15.1 per cent fall since May 3, Credit Suisse have upgraded their recommendation to Neutral from Underperform. Telecom Corporation of New Zealand is listed on the Australian Stock Exchange under stock code TEL. Check your charts.