Vimpelcom Ltd Rating Increased to Buy at Deutsche Bank (VIP)

Vimpelcom Ltd (NYSE:VIP) was upgraded by equities researchers at Deutsche Bank from a “hold” rating to a “buy” rating in a research report issued on Wednesday, reports. The firm currently has a $11.80 price target on the stock, down from their previous price target of $12.50. Deutsche Bank’s price target would suggest a potential upside of 14.34% from the stock’s previous close.

The analysts wrote, “We have updated our model after 2Q13 results and to incorporate current FX forecasts. Although we cut our target price by 6% to USD11.8, we upgrade our rating to Buy as the stock offers c.20% upside potential and the company pays an attractive dividend, translating into 8% yield. On a relative basis, VimpelCom is trading at a 12-27% discount to peers. Although we believe that VimpelCom’s weaker growth profile vs peers, as well as its M&A and governance risks, justify a discount, we find the current discount excessive.”

Shares of Vimpelcom Ltd (NYSE:VIP) traded up 0.78% during mid-day trading on Wednesday, hitting $10.40. Vimpelcom Ltd has a 52 week low of $8.87 and a 52 week high of $12.82. The stock’s 50-day moving average is currently $10.13. The company has a market cap of $16.973 billion and a P/E ratio of 7.55.

Vimpelcom Ltd (NYSE:VIP) last issued its quarterly earnings data on Wednesday, August 7th. The company reported $0.33 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.27 by $0.06. The company had revenue of $5.72 billion for the quarter, compared to the consensus estimate of $5.76 billion. Analysts expect that Vimpelcom Ltd will post $1.26 EPS for the current fiscal year.

VIP has been the subject of a number of other recent research reports. Analysts at Barclays Capital cut their price target on shares of Vimpelcom Ltd from $11.00 to $10.50 in a research note to investors on Tuesday, July 9th. They now have an “underweight” rating on the stock. Analysts at HSBC cut their price target on shares of Vimpelcom Ltd from $15.20 to $15.00 in a research note to investors on Thursday, June 27th. They now have an “overweight” rating on the stock.

One equities research analyst has rated the stock with a sell rating, six have given a hold rating and two have given a buy rating to the stock. Vimpelcom Ltd currently has a consensus rating of “Hold” and a consensus price target of $12.63.

VimpelCom Ltd., formerly New Spring Company Ltd., consists of telecommunications operators providing voice and data services through a range of wireless, fixed and broadband technologies.

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