WOOD Flash – Lukoil: key takeaways from 4Q18 conference call
Lukoil reported strong 4Q18 results on 4 March and held a conference call yesterday (5 March). The key takeaways from the results were continued strong cost control and a positive surprise on the capex side, in our view. As for the conference call, the focus on shareholder returns via disciplined investments and prospects for even better shareholder distributions (via higher dividends and buyback) were the key takeaways for us. Overall, we maintain our HOLD rating and our USD 93 price target (PT) on the stock as we see limited growth potential in the company’s portfolio, and see the main source of returns as being via cash returns (dividend yield + buyback), which we estimate at c.10% in a flat macro environment. We note that, due to the limited free float, the buyback may have a disproportionate effect on the share price, acting as an additional technical factor behind share price appreciation, without a corresponding impact on the fundamental value of the stock.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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.