Goldman Sachs believes the counter is at fair value and suggests waiting to see how subscriber take-up performs
Here is a 16-billion-dollar question for investors: is it time to buy Hutchison Whampoa stock, battered as it is by fears about the roll-out of its third-generation (3G) mobile-phone service?
Not according to Goldman Sachs, which forecasts a HK$40 to $50 trading range for the Li Ka-shing conglomerate over the next 12 months. At yesterday's closing price of $47.70, Goldman believes it is close to fully valued.
Hutchison's 3G operation is budgeted to spend US$16.7 building a business that Goldman says relies on a magic combination of three 'G's' if it is to be successful - goals, girls and gambling.
With content deals lined-up with the English Premier League and Playboy, hopes were high of capturing consumer attention.
Yet with launches in its key European markets - Britain and Italy - complete, results have been mixed. Hutchison forecasts that it will attract one million subscribers in both Italy and Britain by the year-end, but after two months has secured just 100,000 customers in Italy, its best performing market.
