Ferrous metals stocks may continue correction


Market the day before

Negative dynamics prevailed. It was caused not only by the external background, but also by the news of the FAS investigation in relation to metallurgical companies. Kazan Orgsintez shares (KZOSP 35.00, -19.13%) were correcting after the rally. The leaders of growth on corporate news were the shares of the company Mother and Child (MDMG 636, + 10.99%). The USD / RUB pair was trading near the 75.00 mark.

Market and company news

Yandex NV (YNDX 4 730, + 0.56%) will report for the 1st quarter. Revenue is projected at RUB 70 billion. with EBITDA of 8.7 billion rubles. and a profit of 4.1 billion rubles. At the end of the year, the company’s turnover may increase by 35-50%. However, YNDX’s estimate against the background of such positive expectations is rather restrained: the P / E multiple for 2022 is 36, which is considered a low indicator for an IT company demonstrating fast growth rates. The consensus forecast for shares is RUB 5,700. there are 12 months on the horizon. However, estimates are likely to be revised upwards due to strong quarterly results.

Trading Ideas

Sberbank, JSC (SBER 297.9, + 0.65%), spec. purchase, purpose: 305 rubles. Quotes can continue to storm the psychologically significant mark of 300 rubles. Investments in non-banking services will exceed 300 billion rubles, which will make Sberbank the largest ecosystem, leaving no chance for competitors to catch up with it.

Expectations

We expect mixed dynamics. The external background does not provide clear guidelines. On the local market, the focus of investors’ attention is the OFZ auction, during which a great demand for these securities can be demonstrated. Shares of banks and oil and gas companies will show the dynamics better than the market. Ferrous metals stocks may continue their correction. Forecast for the USD / RUB pair: range 74.10–75.10.

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