Deutsche Bank Reiterates Buy Rating, $21 PT on Mobile TeleSystems

In a report published Wednesday, Deutsche Bank reiterated its Buy rating and $21.00 price target on Mobile TeleSystems OJSC

. Deutsche Bank noted, “Vladimir Evtushenkov owns 64% in Sistema, MTS' controlling shareholder. He is also Sistema's chairman of the board. In the interview to Kommersant this morning Evtushenkov said that MTS' 2013 capex will ‘again exceed USD3bn'. During its 3Q12 results disclosure, MTS reported that 9M12 capex amounted to USD1.8bn and raised its full year 2012 guidance to c. USD2.9bn, or 23-24% of revenues from 20-22% previously. This implies that 4Q12 capex could exceed USD1.1bn. While such an acceleration compared to 2Q12 and 3Q12 levels of USD0.7bn per quarter is very significant, this is not an impossible task: in 2008 and in 2011 capex in 4Q was around USD1.1bn level, while in 2010, it was almost USD1.7bn.” Mobile TeleSystems OJSC closed on Monday at $18.22.