Stock flow-direction vane
June 20, 2003

RBC-UFG

United Financial Group (UFG) granted an Outperform rating to common shares of RBC Information Systems with a 12-month target price of $1.96 and a fair price of $1.65. UFG analysts granted this rating based on RBC's 2002 IAS results. "The company is growing faster than the Russian telecommunications sector in general. It has impressive margins and almost no debts," Alexei Yakovitsky, an analyst with UFG, was quoted as saying. The only drawback of the company in his view is its unimpressive size. Alfa Bank, a co-lead-manager of RBC's IPO, is reconsidering its recommendation on RBC's shares (earlier, its recommendation was "to accumulate", with a fair price of $0.84). "The company is experiencing dynamic growth," Alfa Bank analyst Yelena Rogovina said. "Its further development will largely depend on its business television project." She hopes the project will prove successful. However, the analyst finds the target audience of the new television (15m people) stumbling. "Almost 10 percent of the country's population is a too ambitious goal." Even more optimistic evaluations of RBC's shares come from analysts with Aton Capital, the lead-manager of RBC's IPO. It issued the recommendation "to buy" and now is reconsidering the fair price. Aton Capital analyst Nadezhda Golubeva has no doubts about success of the new business television. Yesterday, RBC's shares were traded at $1.05 to $1.25.