Page 11 - bne_newspaper_June_28_2019

bne Invest
June 28, 2019 www.intellinews.com I Page 11
Russian retailer X5 Group seen as cementing leadership by analysts
Russia's largest retailer X5 Group is cementing its leadership and further improving the investment case, Sberbank CIB analysts wrote on June 26 in a note "VIVE LE ROI!".
"X5 Retail Group's Enterprise Value/Ebitda has recovered to the two-year average, which has been a signal to take profits in the past. However, we now see even higher multiples as justified,
as the company benefits from a more favourable market environment," Sberbank CIB wrote.
X5 is intense rivalry with its largest competitor Magnit and has been taking an upper hand due to deeper focus on online sales and delivery solutions. The advantage could be further enhanced by Magnit's CEO Olga Naumova leaving the company this week.
Sberbank upgraded the medium-term Ebitda margin projection for X5 from 7.0% to 7.4%, being the highest in the segment, while assuming incremental ROI of 20% over 2020-2021.
"While the market is concerned about the RUB90bn capex program for 2019, we think it is possible that either capex will be downgraded or Ebitda will come in higher than projected. We raise our target price to $37.00 per GDR and reiterate our BUY recommendation," Sberbank wrote.
Read the full story here
Moldova’s banking sector turning the corner
Moldova has long been a money-laundering black hole. Then in 2014 they had a shock when more than $1bn was stolen from the bank sector – equivalent to 15% of GDP.
Belatedly the government is now responding. Stakes in three of the country's biggest banks, which together account for about 80% of the sector’s assets, have been sold to the European Bank for Reconstruction and Development (EBRD) and private investors and the central bank has been given real teeth to enforce regulations.
bne IntelliNews editor-in-chief Ben Aris talks
to special advisor to the president and head
of strategic planning at Moldova-Agroindbank (MAIB) Corneliu Munteanu and asks if Moldova’s banking sector has turned the corner.
Corneliu Munteanu
special advisor to the president of Moldova, head of strategic planning at MAIB
LISTEN
SUBSCRIBE (FREE)
bne Podcasts