RE: Overreaction?23 Sep 2020 02:20
Possible TO is cooking by Yandex for $5.5B with target sp=$27.6 (or +6% from current sp).
IMO - looks like highly overpriced TO without any reasonable margin of safety especially considering that most european banks are traded half or even third of price vs normal conditions and stricter regulatory requirements for asset quality/structure (and excellent support for monetary system by central banks)
they've set defaults provision multiplier by 2.5 from what they had in H1 last year, but under sanction regime and covid impact - defaults/delinquencies/impairments in their environment is expected much higher (also other asset write-offs/devaluations should be taken into account, which are not, e.g. investment portfolio, etc.)
not sure what turnaround plan Yandex has to monetize this acquisition in order to properly benefit from it considering all risks and post-covid uncertainties.