Bogdan Motors gets order for 202 trolleybuses

Bogdan Motors (UX: LUAZ UK) signed a contract with Kyivpastrans for 202 trolleybuses worth a total value of EUR 46 mln, the company reported Friday in a press release. The deliveries are scheduled between October 2011 and October 2012. The European Bank for Reconstruction and Development plans to lend EUR 60 mln to Kyivpastrans for the purchases. Vitaly Gorovoy: We projected USD 185 mln in revenues for Bogdan Motors from bus sales in 2011-12F. However, we excluded any significant cash receipts from trolleybuses sales in our DCF-model, because the company has not received any large orders for this product in recent years. We view this news as a positive surprise for the company and confirm our bullish view on this stock. Our target price is USD 0.068, upside 100%.