Bloomberg News

Gazprom ADRs Rise Most in Month After Credit Suisse Upgrade

November 30, 2011

(Updates with closing prices in second paragraph.)

Nov. 30 (Bloomberg) -- OAO Gazprom, Russia’s gas export monopoly, rose the most in more than a month in New York after Credit Suisse Group AG upgraded the company’s stock.

Gazprom’s American depositary receipts climbed 5.3 percent to $11.50 at the close of trading in New York, after earlier gaining as much as 5.8 percent to $11.55, the biggest gain since Oct. 27.

Credit Suisse raised Moscow-based Gazprom to “neutral” from “underperform” and lifted the target price for the ADRs to $5.70, from $5.30. Investors have already “priced in” the company’s increased capital expenditure and the slowdown in growth of gas tariffs, analysts led by Andrey Ovchinnikov at Credit Suisse in Moscow wrote in a research note e-mailed today.

“The negative news flow has ended, we don’t see a big downside in the near term,” Ovchinnikov said by phone from London.

Gazprom added 2.8 percent to close at 175.39 rubles on Russia’s Micex index, the highest level since Nov. 18. One Gazprom ADR is equal to two ordinary shares.

--Editors: Emma O’Brien, Glenn J. Kalinoski

To contact the reporter on this story: Ksenia Galouchko in New York at kgalouchko1@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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