Analysts of Sberbank Investment Research started regular analysis of Alrosa and recommend to buy its shares

​“We start a regular analysis of Alrosa and recommend to “buy” its shares. The target price is $1.57 per share. We think the market doesn’t assess in full the potential of value of these shares. Though the devaluation of a rouble from September 2014 has fully smoothed the effect of the price fall for diamonds, and for 2015 the EBITDA growth of Alrosa if forecast by 16% against a year ago, the company’s listing in dollars have risen by 5% only within this period. The profitability of free monetary flows after the payment of interest and a coefficient “company’s value/EBITDA 2015” are quite low now – 19% and 3.4 respectively. We think this is a sign of investors’ anxiety that the changes in the company’s management might lead to the deviation from the strategy of maximization of free monetary flows and reasonable dividend payments. Moderately assessing the perspectives of dividend payments we don’t expect Alrosa to be preparing for a serious change of its course but we hope for a positive reassessment of its shares”, analysts of Sberbank Investment Research said.