Yandex - It All Ads Up
Yandex's deal to merge its taxi business with Uber last week was unexpected and triggered a rerating. However, we think the upside surprises will not end there, because the market is underestimating the magnitude of the near-term share gains in the search ad market made possible by the antitrust settlement with Google. We upgrade our target price by 31% to $36.70 (by $8.8), based on a sum-of-the-parts valuation. The incremental contribution from taxi amounts to around $3.4 per share and another $3.4 comes from potential search share gains, with the rest being due to a stronger ruble modeled.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.