10 days ago we advised rotating out of MBT into YNDX in Russia. The rally in MBT was adding and we saw underperformance in YNDX.
If you have been riding the Yandex (YNDX, quote) roll-coaster over the last few weeks with highs and lows inspired by the Kremlin and earnings we remain committed to a valuation and fundamental call that takes the stock to $35.00 by mid-summer on growth in mobile ad spend and retail exposure through search.
Yandex rallied 6.6% on Thursday as Geneva Ukraine talks yield first positive political developments in weeks from the core parties.
While I’m not surprised to see the weekend press dominated by the impact of sanctions on Russian macro, I have been pretty clear in saying the Russian economy was headed for flat to slightly higher (+0.5%) GDP growth in 2014 unless the world economy demanded much greater from the commodity space.