Yandex (YNDX) Expands Ownership in Uber JVs - Morgan Stanley

Morgan Stanley analyst Luke Holbrook reiterated an Overweight rating and $90.00 price target on Yandex (NASDAQ: YNDX) after the company bolstered its stake in the Uber JVs with a $1bn deal, resulting in Yandex owning 100% of the SDG, Yandex.Eats, Lavka and Delivery, plus 4.5% of the MLU JV (ride-hailing).

The analyst stated "We think the market will view a further option to acquire the remaining stake of the MLU as also attractive. We expect the share to react positively to the news, as Yandex gains full control of several businesses at a
very reasonable price." "We had valued the Self Driving Group (SDG) on a standalone basis at a $7bn valuation in our recent deep dive. This would have placed Uber's 18.2% stake somewhere in the region of $1.2bn. The deal this morning sees Yandex secure Uber's stake in the SDG, plus a further 33.5% share in Yandex.Eats, Lavka and Delivery (these businesses combined posting around $700m of revenue in 2021), for just $1bn in cash."

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 $73.13 yesterday.

You May Also Be Interested In

• AI/ML Innovations plans $2M private placement on the CSE
• SoundThinking (SSTI) PT Lowered to $8 at Cantor Fitzgerald
• Software M&A heats up: Which SaaS stocks could be next for private equity?