Morgan Stanley analyst Gary Yu double upgraded China Unicom to Overweight from Underweight, contending that the company's unique exposure to industrial Internet is not reflected in the stock's current price. He set a price target of HK$12 on China Unicom shares, explaining that he assigns Internet value of HK$2 per share in his base case. Noting that Chinese telcos have underperformed since July 2017, due to market concerns about regulatory and 5G capex risks, Yu noted that the firm has also upgraded its industry view on Greater China Telecoms and Media to In-Line.