Norilsk Nickel - High Commodity Prices Offset Corporate Governance Risks
> Norilsk Nickel has recently decided to push forward its interim dividend payment for 1H17, while warning of a potential cut to the payout from the usual 60% of EBITDA. The message was confusing and is yet another reminder that the company's dividend targets have never been set in stone and that investors should focus more on valuation metrics than target dividend yields. However, despite the rising corporate governance risks, we believe the positive trend in nickel and palladium makes the current valuations rather attractive. We upgrade Norilsk Nickel to a "tactical" BUY and raise our target price to $19.90 per GDR
Sberbank CIB Investment Research is a research firm offering equity, fixed income, economics, and strategy research. It covers analysis on all aspects of Russia’s capital markets, issues and industries. The firm analyzes trends in Russia and combines local knowledge with a global perspective. It processes macroeconomic data, market and company-specific news, stock quotes and other information for providing research reports. The firm provides details and latest prices on the most traded names and most traded paper on all segments Russian market. In strategy research, it provides thematic research, tips and descriptions of the methodology used to evaluate companies.
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