MOSCOW, Jan 25 (PRIME) -- Russian investment company VTB Capital has cut the target prices of depositary receipts of mobile operators MTS and MegaFon due to the weakening ruble, according to VTB Capital’s research note, seen by PRIME on Monday.
The target price of MTS’s American Depositary Receipts (ADRs) was cut by 24% to U.S. $7. The Buy recommendation was maintained.
The target price of MegaFon’s Global Depositary Receipts (GDRs) was cut 27% to $11. The Hold recommendation was confirmed.
VTB Capital analyst Ivan Kim said, “We are reducing our 12-month target prices for MTS…and MegaFon…due to lower foreign-exchange forecasts, which has both a translation effect and reduces free cash flow, and lower growth expectations, as operators find it more
challenging to monetize data.”
MTS’s ADRs closed on January 22 at $6.17 on the New York Stock Exchange, and MegaFon’s GDRs closed at $10.15 on the London Stock Exchange.
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