RUSHYDRO: Taishet Fears Subside; BUY Reiterated
The market had concerns about RusHydro’s potential participation in the Taishet aluminium project and this has been a strong headwind to the stock. However, these have not materialised: the company’s participation terms released last week assume neither a cash burden to the company nor cheap power-supply commitments. Nonetheless, the market appears indifferent and the stock has not recovered. In this light, and combined with an 8% 2018 dividend yield, together with strong management commitment to dividend payments, we believe the stock currently offers a good entry opportunity. We have trimmed our 12M TP to RUB1.13 from RUB1.20 and reiterate our BUY rating.
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