Rodovid Bank Delays Equity Placement, Remains Acquisition Target

Rodovid Bank (RODB: BUY) CEO Denis Gorbunenko said that the bank will not make an equity placement this year of an additional 20% stake in the company, as previously announced. Gorbunenko cited unfavorable international market conditions. According to him, Rodovid Bank will accelerate efforts to attract a strategic investor in 2008. Alexander Viktorov: We believe the bank will face no difficulties in finding a strategic investor. Rodovid Bank deserves a P/B of around 4-4.5x, implying an acquisition price of up to USD 1 bln based on 2007E book value. This would imply a price per share of around USD 2,300 (about 30% to current market price). We reiterate our BUY recommendation and target price.