OREANDA-NEWS. February 17, 2014. Analysts at the investment company RMG Securities began their analysis of Cherkizovo shares by giving them a “buy” recommendation and assessing their target price at USD15.30/GDR.

A report published on RMG Securities’ official website mentions that the Group’s financial indicators being recovered after Russia’s accession to the World Trade Organization (WTO) and the shocks felt in the company’s most profitable business — the pork segment.

However, the analysts note that, due to Cherkizovo Group’s diversified business, Government-imposed restrictions on imports, reduced market supply, and grain price adjustments in expectation of a good harvest, the company had already improved its financial performance in Q2 2013.

According to the experts’ forecasts, gross margin in the Group’s Pork Division will be 10% in 2013, and will hold steady at 22% from 2014 on, due to the company’s effective cost control.
The analysts at RMG Securities point out steady growth in the Poultry Division, moderate average annual revenue growth in the Meat Processing Division, and recommend using a correction for buying a high-quality asset at a low price.