RUSSIAN INTERNET: Growth Despite Headwinds

Initiate with a BUY rating . Current Yandex and Mail stock valuations seem to price in the majority of risks, trading at 13-42% discounts to foreign peers on 2014-16E EV/EBITDA. Based on what we believe are conservative assumptions our 12M target prices for Yandex of $33 per share and for Mail of $29 per share imply 33% and 25% potential upsides, respectively, from current price levels. We initiate coverage of Yandex and Mail with a BUY rating on both stocks.

« Back