UPDATE: Goldman Sachs Initiates Buy On Qiwi On Increase In Active Accounts And Paymenr Volume

In a report published Friday, Goldman Sachs analyst Dmitry Trembovolsky initiated a Buy rating on Qiwi QIWI and set a price target to $70.00. In the report, Goldman Sachs says "Despite significant outperformance since its IPO, we still see upside in Qiwi. We believe Qiwi's earnings will exceed market expectations: our net income forecast for 2014-17 is 7%-13% above Bloomberg consensus. E-wallet will remain the biggest driver of this growth, supported by an increase in the number of active accounts (we expect 34 mn by 2017), payment volume (up to Rub1 tn) and net revenue yield (up to 126 bp including inactive fees). We also believe Qiwi's re-rating should continue, as its 2014-17E PEG ratio of 0.9x looks too low, given the company's first quartile industry positioning, 30%+ CROCI (2014-17E), 3.7% avg div yield (2013-15E), and M&A potential." Qiwi closed on Thursday at $46.33.