TPSA, Turkcell more attractive than MTelekom - Morgan Stanley

Morgan said in a research report it saw 8% upside potential for TPSA, Poland's former telecoms monopoly, saying a promising mobile outlook made the stock more attractive than its Hungarian and Czech rivals.

Turkcell has upside of 6% - although that could go up to 30% under a "blue sky" scenario linked to its exposure to Iran and likelihood that the company will defend its market share agains Turkish competitors in 2006.

Morgan's telecoms team was bearish on Russia in general, saying intensifying competition and slowing subscriber growth in 2006 would lead to further sharp falls in average monthly revenues per user.

It rated Russia's No.2 mobile player Vimpelcom "underweight" with downside of 12%.

Recent oil sector acquisitions by Sistema, which controls Russian mobile market leader MTS, raised uncertainty on strategy, Morgan said, assessing the stock's downside potential at 9.3%.

Source: Portfolio online financial journal



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