Why Yandex Could Benefit From Google's Antitrust Investigation Heating Up In Russia

In a report published Wednesday, analysts at Deutsche Bank explain why they think that the Russian antitrust investigation into Google Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) and an overall increasing government control over the Internet space provide potential catalysts for Yandex NV (NASDAQ: YNDX) shares.The analysts think that the investigation could somehow "break the macro malaise." The analysts also highlight the importance of FX stabilization, which provides a key element necessary for the shares to bottom.Document requests related to antitrust are due this week and the first hearings begin April 13. Deutsche Bank expects some of the emerging headlines to benefit Yandex, to the detriment of Google. "One direct outcome could be more choice from users and OEMs on what type of search can go into Android devices, which could help Yandex market share in mobile," the report explained."Mobile today is only 18% of Yandex revenue (and 24% of queries) but growing over of 80% y/y, making it a critical battle ground. The antitrust investigation, combined with the local data storage laws set to take effect late this year, and recent reports from Vedomosti that Telecom Minister Nikolay Nikiforov has prepared a report on independence of the Russian internet, we see Yandex potentially benefiting from less intense competition in Russia from international players including Google, which controls ~25% of search advertising in Russia and has been gaining traffic share."The analysts reiterate a Buy rating and $21 price target on Yandex, which was up more than 4 percent on Thursday.