Shares of Yandex Jump 7.5% Following Morgan Stanley Note

In a report published Thursday, Morgan Stanley analyst Edward Hill-Wood raised the price target on

from $42.00 to $50.00 and named the stock as the top media pick for 2014. Yandex emerged as a "must own" global emerging market stock. Morgan Stanley noted that new analysis implies that revenue will accelerate in the fourth quarter and grow 33% in 2014 versus consensus of 28%. Free cash flow is forecasted to double to $520 million by 2013-2015 based on the acceleration of high margin core O&O platforms which makes up 75% of revenues. Hill-Wood's recommendation further includes "Yandex to sustain a significant valuation premium to peers due to its developing status as a “must own” stock in EEMEA. This is due to the strength, visibility and predictability of FCF derived from its strong business model, financial discipline and track record of delivery and innovation. A potential maiden dividend and Moscow listing would further enhance this in 2014, in our view." Morgan Stanley's bull case moves to $70.00, the analyst restricted his target due to concerns that Yandex may lose traffic share to Google. Yandex closed at $42.25 on Wednesday and shares have traded as high as $45.42 today, up 7.503%.