Citigroup forecasts double rise of Mechel’s listing

Citi bank has raised the forecast value of Mechel’s ADR from $0.75 to $1.35, the recommendation to “keep” hasn’t changed.

The trades with Mechel’s shares on the MSE opened with a 1.56% fall to 38.62 roubles per share.

On Tuesday Mechel’s shares on the MSE fell by 10% after the announcement of VTB of filing a claim to the Arbitration Court of Moscow against this company for the total amount exceeding 50 bln roubles.

Meanwhile, according to experts, even if the bank wins the case, the procedure of collection might take more than a year.

Due to the fact that the majority of Mechel’s debts are in roubles, its negotiations positions in respect of creditors have significantly improved. The more Mechel postpones the payment of its debts to the banks, the stronger its financial results become.