QIWI: Higher regulatory risks (downgraded to HOLD)
We have downgraded QIWI to HOLD (from Buy) and reduced our price target (PT) to USD 11/GDR, as we incorporate higher regulatory uncertainty (WACC raised to 20% from 13%) and lower payment volumes from 2021E, following the CBR audit resolution. For a large, consumer franchise business, such issues could be viewed as a temporary setback, and even a buying opportunity. QIWI has not developed beyond niche segments, however. As such, regulatory issues present bigger risks for its business model and make the risk/reward balance for its investment case much less attractive.
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.
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