PCCW 12 mth target price 2.89 hkd, hold recommendation: ING Barings

HONG KONG (AFX-ASIA) - ING Barings is recommending a hold on Pacific Century CyberWorks Ltd, with a 12-month target price of 2.89 hkd, based solely on the value of Hong Kong Telecom's assets and its Cyberport project.	    In a results preview, analysts Craig Racine and Leo Tang said that on a "sum of the parts" basis, PCCW is valued at 4.46 hkd, with the HKT traditional telecom assets and Cyberport infrastructure worth 2.89 hkd and its "concept" businesses 1.57 hkd.	    "We expect support for the PCCW share price at 2.89 hkd," they said.	    They said the overhang from Cable & Wireless PLC's stake in PCCW will cap any upside in the share price and added that "positive company-specific news is not anticipated until the third quarter, at the earliest."	    ING Barings sees PCCW posting a 2000 net profit of 85 mln hkd, assuming no goodwill amortisation or investment losses.	    However, the analysts said there is significant uncertainity for the 2000 results due to the treatment of goodwill from the takeover of HKT and potential revenue losses on its investments.	    The analysts believe that goodwill will be written off directly against reserves, in line with PCCW's existing accounting policy.	    PCCW closed up 0.05 at 3.50 hkd. 

Related stock : (NIL)