Qiwi's Russian Post Partnership Could Give 'Strong Boost,' JPMorgan Says

In a report published Tuesday, JPMorgan analysts maintained an Overweight rating on

, after the company signed a partnership with Russian Post. Qiwi has inked a strategic partnership with Russian Post (RP) to offer a joint money transfer service. This would allow customers to transfer money via the Qiwi network and receive cash in any of the post offices across Russia. Although there is unlikely to be a financial impact on Qiwi's business in the near term, the partnership could boost Qiwi's money remittance (MR) division significantly in the longer term. In the report JPMorgan noted, "While we view Russia-2-CIS segment of the money remittance industry as more profitable compared to transfers within Russia, we view the partnership with Russian Post as highly positive for Qiwi's business." The analysts expect the partnership to "significantly increase payment volumes going through Qiwi's network of kiosks currently owned by agents and allow Qiwi to bargain for better terms vs. those that are currently in place." "Longer term, we expect the partnership to allow Qiwi to deliver faster top line growth keeping high levels of profitability," the analysts added.