Auriga Maintains Hold on China Mobile (CHL)

Auriga is out with its report today on China Mobile CHL, maintaining Hold.

In a note to clients, Auriga writes, "We view China Mobile's capex increase announcement for 2011 during its earnings release on 3/16/11 as marginally positive for our communications semiconductor universe. The capex increase of 6.5% YoY for 2011 is not particularly large in and of itself, but it was better than investor expectations for a flat-to-down guide. This news should mitigate
investor fears that China telecom spending maybe headed for a multi-year decline after a big run-up in recent years."

At the time of posting, shares of CHL were trading pre-market at $44.54, down 0.98% from Wednesday's close.