VimpelCom Receives a Buy from Credit SuisseBy Jason Carr
“We initiate coverage with an Outperform rating and a US$4.8 target price. We think the market is finally pricing in most of the risks but not all of the potential upside from VimpelCom’s improving and potentially superior cash flows. We see c40% equity upside potential with dividend optionality in 2017E. Investment case: VimpelCom is now one of our top picks in the Russian mobile sector. We think that we may be at the end of the tunnel for the company’s operational and corporate transformation and the risks of the investment case may finally be incorporated into the share price. We are cautiously optimistic on the mobile sector in Russia – now VimpelCom’s largest country of operations – expecting an inflection point in macro and competition in 2016-17E. We are also more optimistic about execution in Russia, Algeria and Pakistan as well as deleveraging trends triggered by the recent approval of consolidation in Italy. With a now strong cash flow profile, we expect dividends to resume in 2017E and think there is room for a competitive dividend yield in the context of the European and Russian telecom sectors.”
Bystrova has an average return of 67.4% when recommending VimpelCom.
According to TipRanks.com, Bystrova is ranked #1037 out of 4162 analysts.
VimpelCom has an analyst consensus of Moderate Buy, with a price target consensus of $4.15.
The company has a one year high of $4.51 and a one year low of $2.71. Currently, VimpelCom has an average volume of 4.99M.
VimpelCom Ltd. engages in the provision of telecommunications service and operation. It offers voice and data services through a range of traditional and broadband mobile and fixed technologies in Russia, Italy, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Armenia, Georgia, Kyrgyzstan, Laos, Algeria, Bangladesh, Pakistan, Burundi, Zimbabwe, Central African Republic and Canada. It also provides services under the following brands: Beeline, Kyivstar, djuice, Wind, Infostrada, Mobilink, Leo, banglalink, Telecel, and Djezzy. The company was founded by Dmitri B. Zimin and Augie K. Fabela II in 1992 and is headquartered in Amsterdam, the Netherlands.