Deutsche Bank Initiates Coverage on Central European Distribution (CEDC) with a Buy
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Deutsche Bank initiates coverage on Central European Distribution (Nasdaq: CEDC) with a Buy.
Deutsche analyst says, "We see the recent de-rating of Russian equities as presenting an opportunity
to acquire shares in CEDC. The company is the leading vodka producer in Russia. While the risks of operating in the region are high, so is the potential growth. Growing consumer affluence is fueling demand for premium vodka, while the fragmented nature of the market offers significant share gains and acquisition opportunities. Given that the shares are trading on only a sector multiple with above-average growth in prospect...Management recently reiterated its guidance of 6-7% sales growth in Poland and 25% in Russia. For the group, this translates into 15% organic sales growth. We see this pace of low-double-digit organic sales growth as sustainable in the short to medium term."
Central European Distribution Corporation (CEDC) is an integrated spirit beverages business.
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CEDC is a Polish company
Jaime Cortes on Sep 16, 2008 10:36 AMCEDC is a Polish company, operates mainly in Poland and Hungary. It has about $150 mil stake in a Russian company, which started only recently. This is not a Russian company. Deutsche Bank is under the illusion with the risk associated to the Russian market. I have already seen this mistake with other analysis, which we should sent back to elementary school and teach them some geography!