LSR GROUP: 2Q17/1H17 Trading Update - Weak Results; Downgrade to HOLD
LSR Group reported a weak 2Q17/1H17 trading update yesterday, which suggests that the company’s net full-year contract sales are likely to fall below the official guidance of 770k sqm. Consequently, we revise our financial forecast downwards, and reduce our target price to RUB950 per share ($3.2/GDR) from RUB1,050 per share ($3.7/GDR). This implies 15% upside potential from current quotes, and prompts a downgrade to HOLD from Buy. We do expect the second half of the year to be stronger for the company from an operating standpoint, but we believe this is priced-in and do not see short-term catalysts in the name.
Since its inception in 1991, ATON has built a reputation for combining in-depth local knowledge of the Russian market with the highest international standards in research, sales and trade execution. As a result, we have been able to attract many of the leading domestic and international institutional fund management groups as our clients. As one of the leading independent investment banks in Russia, we offer the full range of institutional brokerage service, including:
- Detailed fundamental analysis of economics, sectors and companies, with the widest coverage universe in Russia and the CIS;
- Timely trading ideas to help clients take advantage from short-term pricing discrepancies;
- Competitive prices and prompt execution of trades;
- An on-line platform providing easy access to all our research products and tools.
- Client-focused Service
- We employ state-of-the art technology to ensure the highest quality of investment services as well as the highest level of data protection.
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