UBS has upgraded its 12-month target price for RBC shares to $10 from $8.1, reiterating its "buy" recommendation. The company's business model is becoming more understandable for the market; RBC's management is likewise backing its words with actions resulting in increased investor confidence. Experts at UBS believe that the main reasons for the increase of RBC's share value are the company's expansion on the Ukrainian market, the launch of a new television channel, the deal with Mostelekom, and higher-than-expected organic growth.

United Financial Group (UFG) reports that according to data from the Russian Association of Communication Agencies (AKAR), there has been a 28-percent growth in Russia's advertising market to $5bn against its forecast of $4.9bn. The TV advertising market has jumped 37 percent to $2.3bn, exceeding UFG's expectation by 5 percent. The Internet advertising segment has surged 71 percent, exceeding the forecast by 11 percent. The group's analysts said the advertising market's growth underpinned RBC's positive outlook. The company receives some 70 percent of its revenue from TV and Internet advertising. UFG expects that RBC's net profit will double in 2005, reaching $22mn, triggered by organic revenue growth and a rise in profitability. UFG has released an outperform recommendation for RBC. Yesterday, share price for RBC was $8.5 on RTS. In this column, we inform our readers whenever investment banks change or publish recommendations, or price securities. You may act on (or disregard) these recommendations at your own risk.