In a midday note published on Friday, analysts at Deutsche Bank downgraded shares of NTT Docomo Inc ADR DCM from Buy to Hold.
Peter Milliken outlined reasons for the downgrade.
Due to aggressive price cuts, Operating profit guidance has been cut 16%.
“While there is support from the buy-back and government led equity purchase initiatives, we expect that to be soaked up quickly by eager sellers.”
On the other hand, analysts feel the stock is not a sell because the 103 million share buyback will begin immediately if needed; Government stimulus plan is launching, and the company is aware of its mistakes and is cutting capex.
Shares of NTT Docomo Inc recently traded at $16.80 up 2.8 percent.
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