OREANDA-NEWS. October 12, 2009. AEB released operating statistics for passenger car sales and LCV sales in Russia for September and for 9M09. In 9M09 car sales dropped by 51%, but MoM dynamics were positive (+6%), reported the press-centre of OTKRITIE FC.

View: We think that these positive monthly dynamics are due to government support, and market stabilization leads us to believe that the car market has begun to recover. Operating figures for Sollers in September showed a very impressive rise (+21%), however the dynamics for GAZ (+3.5%) and AVTOVAZ (-3.4%) were closer to the market. We view the news as generally positive for Russian automotive producers, although the automotive market continues to struggle through a very difficult year. From our standpoint, in order to facilitate further market stabilization the government should continue support measures.

Valuation and Action: Sollers trade on a 2009E ’ EV/EBITDA of 13.5x, which is broadly in line with peers in developed economies. We reiterate our HOLD rating for Sollers.