QIWI - Strong 1Q19 Increases Our Conviction, Triggers Upgrade
We reiterate our BUY on QIWI and upgrade our target price by 5% to $24.94 per share following the strong beats in the 1Q19 results and the guidance upgrade. We think QIWI is well positioned to benefit from the growth of its payments segment, where it is especially strong in servicing the SME, the sharing economy and self-employed individuals. Proposed legislation to tighten the rules for betting will be a catalyst for QIWI if approved. Other potential catalysts include figuring out the right strategy for the consumer banking business (Sovest and Rocketbank). The key risks are a share overhang from Otkritie FC Bank's stake (35% economic interest) and possible adverse changes in regulation (though there are not any on the radar now). We consider QIWI to be attractively valued at our 2019E EV/EBITDA of 6.4 and P/E of 10.3 (5.9 excluding Sovest and Rocketbank).
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.