Deutsche Bank Upgrades VimpelCom (VIP) to Buy

Deutsche Bank upgraded VimpelCom (NASDAQ: VIP) from Hold to Buy with a price target of $10.00 (from $9.40).

Analyst Igor Semenov comments, "We cut our estimates for VIP again after weak results and lower guidance. We expect revenue dynamics to remain negative for the rest of the year. However, VIP recently completed the refinancing of its Italian unit and agreed on a sale of a majority stake in its Algerian operation, both of which should be positive for earnings via reduced interest costs. We also reduce our WACC for Wind owing to lower interest rates. As a result, we raise our target price to USD10. Given the upside, we raise our rating to Buy, although near-term performance could still be volatile until revenue trends in major operating units start to stabilise. We reiterate our USD4/share target price and Hold rating for GTH."

For an analyst ratings summary and ratings history on VimpelCom click here. For more ratings news on VimpelCom click here.

Shares of VimpelCom closed at $7.91 yesterday.

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