Bloomberg News

Norilsk Price Estimate Raised 60% at UniCredit on Metal Outlook

June 05, 2009

OAO GMK Norilsk Nickel, Russia’s biggest mining company, had its stock-price estimate raised 60 percent to $147 at UniCredit SpA, which cited higher forecasts for copper and platinum, as well as lower risks associated with Russian equities.

“Current high metals prices may not only prove sustainable but have even more upside,” UniCredit analysts Marat Gabitov and George Buzhenitsa in Moscow wrote in a report dated today. “This cash cow still has room to grow.”

The Italian bank said Norilsk may pay up to $2 billion in dividends next year, or a 9 percent yield on current stock prices. It reiterated its “buy” recommendation on the stock.

To contact the reporter on this story: William Mauldin in Moscow at wmauldin1@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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