PSB analysts updated the selection of shares for short-term investors

The material is informative and is not an individual investment recommendation.

PSB analysts have updated the model portfolio with promising shares in the Russian stock market.

The overall market situation has improved somewhat, analysts say PSB. Maintaining high energy prices and hopes for intensification of contacts with the United States feed the appetite for risk in the Russian stock market and create conditions for the development of oil stocks and the revival of demand for “chips” with a good fundamental background outside the oil and gas sector, experts said.

Experts decided to open positions on the securities of the oil company Rosneft, food retailer X5, Ozon marketplace, energy company RusHydro, which fundamentally look attractive, as well as undervalued securities of the electric grid holding Rosseti.

Rosneft

The target price for shares of the oil company Rosneft (ROSN) is м410, the growth potential from current levels is about 19%. Stop-loss is set at ке334. According to PSB experts, Rosneft is not only a beneficiary of a favorable price environment in the oil market, but also has a good medium-term revenue growth potential due to the launch of the Vostok-Oil oil and gas production project.

RusHydro

The target price for shares of the energy company RusHydro (HYDR) is м0.44 per share, the growth potential from current levels is about 16%. Stop loss is set at ке0.36. RusHydro shares are fundamentally attractive, experts said. The company showed strong financial results in the second quarter, they noted. It was able to deliver stronger-than-expected revenue and operating income growth, thanks to both higher prices and higher output. PSB expects a favorable price environment in the electricity markets and a strong second half for RusHydro.

Rosseti

The target price for shares of the electric grid holding Rosseti (FEES) is 0.06, the growth potential from current levels is about 20%. Stop-loss is set at ке0.047. Experts included heavily undervalued shares of Rosseti with low weight (5%) in the portfolio. PSB analysts expect an increase in interest in the power sector against the background of the October increase in tariffs in Russia.

Ozon

The target price for shares of online retailer Ozon (Ozon) is м3500, the potential growth from current levels is about 12%. Stop-loss is set at ке2870.

The PSB considers the securities attractive, despite the expected local pressure on margins due to rising costs for infrastructure restoration, remains strong. The investment attractiveness of Ozon is ensured by a further increase in the share in the total volume of e-commerce due to the active flow of sellers and buyers from competitors. Growth in turnover (GMV) continues to outpace the market, including due to successful regional expansion and high profitability of mature IT services – advertising platform and fintech, which are growing faster than the classic retail direction.

X5

The target price for shares of grocery retailer X5 (X5) is м2190, the growth potential from current levels is about 15%. Stop-loss is set at ке1840.

Experts noted that X5 maintains leadership in food retail, increases traffic, develops the discounter Chizhik and digital directions, and the debt burden of the retailer remains comfortable.

After the next update, the PSB model portfolio includes securities of six companies. The portfolio is as follows:

Rosneft: target - »410, growth potential from current price - 19%; Gazprom: target - »114, growth potential from current price - 18.5%; Ozon target – 3500 growth potential from the current price – 12%; X5: target – 2190, growth potential from the current price – 15%; Rosseti: target – 0.06, growth potential from the current price – 20%; RusHydro: target – 0.44, growth potential from the current price – 16%; Qian: target – 740, growth potential from the current price – 14%; NOVATEK: target – 1200, growth potential from the current price – 15%.

The model portfolio of PSB includes shares that the bank considers the most fundamentally attractive. The investment horizon is from two weeks to six months.

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