The main reason behind the upgrade is what's viewed as a comeback by its fixed-line telephone business. Also, NTT should experience fixed cost savings due to retiring baby boomer personnel. Lastly, government regulation of telecommunications remains a threat but seems to be lessening.
NTT's ordinary shares were one of the few big name gainers on a down day in Tokyo. They finished up 1.06% at 573,000 yen ($5,032). The closing price equates to $25.16 for its ADRs when accounting for the current exchange rate and 200:1 ADR listing ratio. NTT's ADRs closed yesterday at $25.05. CS's new target share price equals $30.73 for its ADRs at the current exchange rate.