OREANDA-NEWS. Alfa Bank analysts upgraded their valuation of mobiles and added VimpelCom to their Top Picks, upgrading the target price and recommendation for VimpelCom (VIP) and MTS, Alfa Bank's press service reports.

The experts now see VimpelCom as the most attractive Russian telecom stock. Its sustainable ARPU growth in Russia and high exposure to the CIS, together with the possibility that it will enter new markets and resolve a shareholder conflict, provide considerable upside for investors. Voice and VAS usage growth will likely result in 2008 revenues at least 10% above the current market consensus. The increasing share of the company's CIS business will contribute more to FCF as CIS operations turn OIBDA-positive. "We expect VIP’s revenues to grow at a 2007-09 CAGR of 18% vs. 15% for its main competitor, MTS. We upgrade our recommendation to BUY both for VIP and MTS, with a 12-month target price of $37 and $83, implying an upside of 41% and 21%, respectively," the experts stated.