Daily analyst comments

MTS to split ADRs


	MTS

Capitalization: 16 181 343 190,01 $

Common shares
Price	8,12 $
Target price	15,10 $

Price changing
week	month	year
-1,2%	-0,7%	29,3%

21.04.10 10:39

We believe that the lowering of MTS ADR quotes because of the split will expand the circle of potential investors and could stir up interest from non-institutional investors, which in turn could improve the liquidity of MTS ADRs.

MTS has announced it could alter the ratio between its ADRs, listed on the NYSE, and common shares starting 3 May 2010. As a result, the ADR/common share ratio can change from 1:5 to 1:2. On April 30, holders of MTS ADRs as of final bell April 28 are to receive additional 1.5 ADRs per each security in ownership.

We are upbeat on the operator’s initiative. MTS ADRs currently trade at USD 56-76. We believe the split and a subsequent decrease in the security cost could increase the liquidity of MTS ADRs and, as a result, broaden the range of potential investors in the company, above all on account of non-institutional investors. Our target for MTS common shares (RTS: MTSS) on 31 December 2010 is USD 13.90 per share with a BUY rating.

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