LSR GROUP: 2Q17/1H17 Trading Update - Weak Results; Downgrade to HOLD

LSR Group reported a weak 2Q17/1H17 trading update yesterday, which suggests that the company’s net full-year contract sales are likely to fall below the official guidance of 770k sqm. Consequently, we revise our financial forecast downwards, and reduce our target price to RUB950 per share ($3.2/GDR) from RUB1,050 per share ($3.7/GDR). This implies 15% upside potential from current quotes, and prompts a downgrade to HOLD from Buy. We do expect the second half of the year to be stronger for the c...