We consequently recommend investors seeking exposure to the Russian utilities sector rebalance their portfolios towards distribution stocks, which we believe provide sizable potential upsides and have visible triggers in the near term.
Our revised forecasts for the distribution stocks incorporate our strategy team's 50 bpts reduction in our Russian base cost of equity and our economics team's latest estimates, which include a 4.
This is positive news for distribution stocks
, in our view, since we believe privatisation is the key driver for MRSKs.
What is his outlook for Avnet and other distribution stocks
Overall we view the news as moderately negative for MOESK and electricity distribution stocks
software distribution stocks
more than 25,000 products.
company-specific risks, which results in either major upside or major downside in the majority of electricity distribution stocks.
Despite the significant cuts to our target prices we continue to rate most of the distribution stocks a BUY, primarily due to their weak share price performance in recent months.
Appreciation was the major reason for the increase in distribution stocks
As a result we see major upside Co or downside eAE in most electricity distribution stocks
Nevertheless at current price levels we still see significant upsides and rate 10 out of 14 electricity distribution stocks
0%) our valuation implies 103% average upside potential for distribution stocks