Credit Suisse cut its price target on Qiwi PLC QIWI Tuesday from $41 to $31 and maintained an Outperform rating. The firm adjusted earnings estimates due to F/X.
Analysts led by Georgios Mihalos commented, "we are lowering our 2014/15/16 adj. EPS estimates by ~8.4 percent, 31.2 percent and 30.9 percent respectively. Effectively all of the company’s revenue is sourced in Rubles which are down a stunning 45.5 percent YTD relative to the USD.”
The Credit Suisse 2014/2015/2016 adjusted EPS estimates for Qiwi are now $1.53, $1.08 and $1.32, respectively.
The target price of $31 was based on “25x our 2016 fully distributed EPS estimate. Our multiple reflects strong growth prospects and is in-line with our long-term EPS growth rate.”
Risks included “nascence of the Russian payments market, reliance on newer revenue streams, emerging competition, regulation risk, F/X translation risk and data security.”
Qiwi closed Monday at $20.49, up 2.14 percent.
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