OREANDA-NEWS. November 11, 2009. AEB reported its update for car sales in October 2009. Overall sales volume declined from 118,000 in September to 117,000 in October. In particular, Sollers underperformed Russian market, posting a decline from 6,954 units in September to 5,322 in October, reported the press-centre of OTKRITIE Financial Corporation.

View: We have a neutral view on the data released. Sollers unsuccessful performance can be traced to a lack of government purchases, which were present in September. All in all, the market still resides in a trough, showing little sign of recovery. The situation could potentially improve in early 2010, as the demand at the end of the year is traditionally rather low.

Valuation and Action: Sollers trades in line with peers on a 2009E EV/EBITDA of 13.6x. We have a HOLD rating for this stock.