Following the rally in Russian utility universe, putting the sector ahead of every other Russian equity segment in year-to-date terms for 2020,
As reported by bne IntelliNews,Russian utility majors are in focus as the sector is set to continue to rally in 2020.
The most recent upward move in the sector has come across the board, from RusHydro (up 34%) to TGK1 (up 25%). “At this point, share price moves have put the sectoral average dividend yield for 2020 (ex-
As the high dividends of the utility companies seem to be priced in, further re-rating could be linked to positive surprises in the upcoming 2019 financials, a moderation in the perception of the ‘fair’ dividend yield level, and any substantial M&A.
Accounted for those factor being equal, VTBC sees a “good number of Russian utilcos are fairly valued”, maintaining a Hold recommendation for Mosenergo (12-month target price
The pockets of growth are seen in the revision of the future profitability dynamics. VTBC believes such growth still leaves plenty of upside for
©2020 bne IntelliNews
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