Russian transport: JP Morgan opts for Sovcomflot

Globaltrans Investment

17/11/2020 07:57

** JP Morgan prefers Sovcomflot  FLOT.MM  among the Russian
transport companies as the stock appears to offer both growth
and value
    ** It starts the shipping firm with "overweight", saying it
has a materially higher quality business mix than many of its
peers, given that almost 50% of its revenues are based on
contractual nature of operations, the broker says 
    ** Sizable investments into new ships for LNG projects will
result in a robust ramp-up of revenues starting from 2023, it
adds
    ** The brokerage cuts Globaltrans  GLTRq.L  to "neutral"
from "overweight" as it expects H2 and H1 2021 revenue per car
to be lower compared to H1, leading to declining earnings
    ** It remains "underweight" on Global Ports  GLPRq.L  and
looks for further potential asset divesture, which could speed
up the deleveraging process
    

 ((Anna.rzhevkina@tr.com))