Yandex (YNDX) PT Cut on Macro Concerns - Deutsche Bank
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Price: $18.94 --0%
Rating Summary:
19 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
19 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Deutsche Bank maintained a Buy rating on Yandex (NASDAQ: YNDX) but reduced its price target to $38.00 (from $44.00) on macro concerns.
Analyst Lloyd Walmsley said, "We cut our estimates and update our model to reflect a more conservative outlook in light of a weaker ruble and softening macro. We continue to view Yandex as well positioned to benefit from share gains in online advertising in Russia, driven by algorithmic and back-end ad tech improvements. We view the shares as attractively priced in a status quo macro situation, though the stock is not particularly cheap relative to its historic valuation range and we lack conviction that the macro or geopolitical situations will reverse. We adjust our target to $38 based on new estimates in line with guidance on the top line and for margins, Buy."
"Yandex shares are trading at 24x and 19x on 2014 and 2015 our PF EPS estimates, respectively, vs. a 23% Adj EPS CAGR (’13-’15) in local currency. We view estimates as conservative, assuming an economic status quo. Any material macro weakness, however, would put our local currency estimates, USD/ruble FX rates, and valuation multiples at further risk of downside, making it difficult to assess a stock price at which Yandex becomes “to cheap to ignore”. Assuming FX / macro stasis, we see "too cheap”" in the low $20s.," added the analyst.
For an analyst ratings summary and ratings history on Yandex click here. For more ratings news on Yandex click here.
Shares of Yandex closed at $29.16 yesterday.
Analyst Lloyd Walmsley said, "We cut our estimates and update our model to reflect a more conservative outlook in light of a weaker ruble and softening macro. We continue to view Yandex as well positioned to benefit from share gains in online advertising in Russia, driven by algorithmic and back-end ad tech improvements. We view the shares as attractively priced in a status quo macro situation, though the stock is not particularly cheap relative to its historic valuation range and we lack conviction that the macro or geopolitical situations will reverse. We adjust our target to $38 based on new estimates in line with guidance on the top line and for margins, Buy."
"Yandex shares are trading at 24x and 19x on 2014 and 2015 our PF EPS estimates, respectively, vs. a 23% Adj EPS CAGR (’13-’15) in local currency. We view estimates as conservative, assuming an economic status quo. Any material macro weakness, however, would put our local currency estimates, USD/ruble FX rates, and valuation multiples at further risk of downside, making it difficult to assess a stock price at which Yandex becomes “to cheap to ignore”. Assuming FX / macro stasis, we see "too cheap”" in the low $20s.," added the analyst.
For an analyst ratings summary and ratings history on Yandex click here. For more ratings news on Yandex click here.
Shares of Yandex closed at $29.16 yesterday.
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