Russian internet: JPM flags potential debt risks for Yandex, VK

VK

10/03/2022 10:44

** JPMorgan downgrades Russian internet giant Yandex
 YNDX.O  to "neutral" from "overweight" citing uncertainty over
possible redemption of convertible bonds after the group's
shares were suspended from trading
    ** The brokerage highlights Yandex's and VK Group's
 VKCOq.L  - another large Russian player - sizable exposure to
USD-denominated debt
    ** According to JPM, both companies will likely need to
restructure such loans with bond holders or find other means of
financing elsewhere to repay them
    ** Apart from this, JPM sees no immediate impact on local
internet companies' day-to-day operations, as there has been no
direct impact from Western sanctions on the sector so far
    ** It cuts target prices for all four major Russian internet
players: Yandex to $26 from $100, Headhunter  HHR.O  to $15 from
$53, Qiwi  QIWI.O  to $5 from $9, VK to $6 from $14

 (Reporting by Olga Beskrovnova)
 ((olga.beskrovnova@thomsonreuters.com))