Global Ports is one of Russia’s largest stevedoring companies with a focus on container and oil product transhipments. The company looks solid in terms of its financial position and corporate governance, but as a participant in the highly volatile container transportation market, it is vulnerable to setbacks in the economy. At the same time its current stock price, on our estimates, implies a rather stable outlook for Russian economic growth and premiums on valuation ratios to its Russian peers. We thus see limited growth opportunities for the stock and initiate coverage on Global Ports’ shares with a HOLD rating and DCF-based target price of $13.95/GDR.
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