Bloomberg News

Raspadskaya Gains 2nd Day as Deutsche Lifts to Buy on Prices

July 10, 2012

OAO Raspadskaya rose for a second day after Deutsche Bank AG lifted the Russian coal producer to buy from hold, citing a stronger price forecast.

Raspadskaya jumped 4 percent to 86.03 rubles by the close in Moscow, the strongest advance in a week. The stock has lost 13 percent this year and trades at 7.5 times estimated earnings, the highest level since May 6. The Micex Index added 0.6 percent to 1,422.58.

The upgrade was due to “a combination of higher metallurgical coal price forecasts, superior production growth profile, robust free cash flow generation, good scope for dividends distribution and fading corporate risks,” Deutsche analysts led by George Buzhenitsa, said in an e-mailed research note.

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

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


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