Morgan Stanley Sees Another Weak Quarter For VimpelCom Ltd.
In a report published Wednesday, Morgan Stanley analyst Cesar Tiron reiterated an Equal-Weight rating and $10.20 price target on VimpelCom Ltd. (NASDAQ: VIP).
In the report, Morgan Stanley noted, “VIP continued to underperform in key markets and cut its guidance for FY2014. High management turnover – a key concern for the group – continues with the departure of GTH CEO. We stay EW. Russia continues to worsen. Service revenues declined by 3.7% in 1Q14 versus flat in 4Q13 and 2% growth in 3Q13. A slowdown of data growth to 22% versus ~30% in 2013 was also recorded. EBITDA margin fell 160bps YoY to 40.1% in 1Q14 mainly on falling revenues and investments in monobrand roll-out.”
VimpelCom Ltd. closed on Tuesday at $8.26.
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