Yandex - Transport Super App Taking Shape
We reiterate our BUY rating on Yandex. We increase our target price by 3% to $52.40 per share mainly due to FX effects. We value the Yandex.Taxi JV at $7.77 bln, which implies $14.1 per Yandex share, 27% of our target price. On our estimates, Yandex is trading at a 10.5 2020E EV/EBITDA and 20.1 P/E; excluding the taxi JV stake, Yandex's core business is trading at an 8.1 2020E EV/EBITDA, which we see as attractive and supporting of our BUY rating. In this report, we have revisited our TAM estimates for shared transportation in Russia and expect that it will reach around R2 trln by 2020, growing at a 2018-25E CAGR of 15%. We estimate Yandex.Taxi's share in rides in Russia at around 20% in 2018 and think it is well positioned to boost its share in the shared transportation market to 60% in the longer run. We think Yandex is best positioned to become the leading transportation "super app." Outside of Russia, Yandex.Taxi already operates in 17 other countries spanning from the FSU to Africa, with a combined population of 189 mln.Yandex is an internet and technology company that operates an internet search engine in Russia. Co. builds intelligent products and services powered by machine learning. Co.'s products and services are based on complex, unique technologies that are not easily replicated. Co. generates substantially all of its revenues from online advertising. Co. also generates revenues from its e-commerce offerings, classifieds and e-hailing service. Co.'s businesses are organized in the following operating segments: Search and Portal; E-commerce; Taxi; Classifieds and Experimental businesses.
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.