Chunghwa Telecom reinstated with a Neutral at BofA

BofA reinstated coverage of Chunghwa Telecom with a Neutral rating and $39.52 price target. Following industry consolidation that has seen the number of telecom operators in Taiwan fall to three from five, the firm expects less irrational competition and market share to stabilize. However, while the firm expects Chunghwa to benefit from healthy industry competition and “high certainty” on its dividend policy, the firm thinks the “rich valuation may cap further upside from here.”