Deutsche Bank Upgrades VIP to Buy

Friday, May 23, 2014, Deutsche Bank Upgraded

to Buy and established a Target Price of $10. Deutsche Bank analyst Igor Semenov says, "We cut our estimates for VIP again after weak results and lower guidance. We expect revenue dynamics to remain negative for the rest of the year. However, VIP recently completed the refinancing of its Italian unit and agreed on a sale of a majority stake in its Algerian operation, both of which should be positive for earnings via reduced interest costs." Semenov continued to say, "We also reduce our WACC for Wind owing to lower interest rates. As a result, we raise our target price to USD10. Given the upside, we raise our rating to Buy, although near-term performance could still be volatile until revenue trends in major operating units start to stabilize." VIP stocks responded to the Upgrade and traded up 2.53 percent, or 0.20 points to close at 8.11 at 4:00PM EDT.