BUY Johnson Electric Holdings Closing price: $7.25 Target price: $10.26 Share price performance (%) 1wk: 5.07 3mths:27.63 1mth:17.71 1yr:19.55 Analyst Theodore Teo has upgraded the rating on the micromotor maker to 'buy' from 'reduce' despite the company's earlier warning against rising raw materials and administrative costs. 'Revenue growth this year remains intact and Johnson Electric appears poised for faster growth ahead with the new programmes under qualification and increased penetration into the audi-visual markets with Nihon Mini Motor,' Mr Teo said in a report. Nomura BUY PCCW Closing price: $5.15 Target price: $5.90 Share price performance (%) 1wk: 3.73 3mths:13.22 1mth:7.07 1yr:2.94 S&P has upgraded its rating on the stock from 'hold' to 'accumulate' given its relatively attractive valuation. S&P believed the firm's share placement of Dong Fang Gas Holdings would have a positive impact on its financial position as it could use proceeds to cut debt and realise an exceptional gain. Still, it cautioned the short to medium-term risks including the faster than expected market share erosion in its fixed-line business in Hong Kong. S&P Asian Equity Research BUY Beijing Capital Int Airport Closing price: $2.425 Target price: $3 Share price performance (%) 1wk: 1.04 3mths:7.47 1mth:9.17 1yr:47.32 A more liberalised 'open-sky' policy in the mainland has prompted analysts Stacy Shi and Nam Nguyen to upgrade their rating on Beijing Capital, the only overseas listed national hub, from 'hold'. The analysts said in a report Beijing was likely to see further liberalisation of its sky policy following the precedent set by Shanghai after the CAAC said all domestic airlines would be allowed to set up base in Shanghai next spring. Deutsche Bank
