UPDATE: JP Morgan Upgrades Mobile TeleSystems to Neutral on Strong Expectations for Q4, FCF Outlook

JP Morgan upgraded Mobile TeleSystems

from Underweight to Neutral and raises the price target from $20.50 to $25.00. JP Morgan analyst Alexei Gogolev noted, "We increase our end-13 PT on MTS to $25/ADR on a 15-20% increase to FCF projections for 2013-15E and upgrade rating to Neutral. We are closing our previous call to UW MTS vs. Megafon and note that the latter is up more than 50% since IPO in late November (vs. 25% share price appreciation at MTS). We are now more positive on MTS given attractive FCF growth prospects, defensive characteristics and expectations of strong 4Q12 results." Mobile TeleSystems closed at $20.98 on Tuesday.