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The 2014 All-Russia Research Team: Financial Services, No. 1: Mikhail Shlemov

Mikhail Shlemov
UBS
First-Place Appearances: 3

Total Appearances: 3

Analyst Debut: 2012

Mikhail Shlemov debuted on this lineup in 2012, coming out of nowhere to seize first-place honors. He hasn’t budged from that spot, despite his move from VTB Capital to UBS in September. The 31-year-old researcher tracks eight companies, half of which are based in Russia, and among his currently favored names is Sberbank of Russia. Crimea-related tensions between Russia and the Ukraine helped drive the shares down 30.9 percent year to date in mid-March, to 69.80 rubles — in line with the sector’s decline — and Shlemov saw a buying opportunity. The Moscow-based lender and commercial banker “can sustain its high-teens return on equity even under quite an adverse macro scenario,” says the researcher, whose price target for Sberbank’s stock is 130 rubles. It closed May at 84.50 rubles. Also in mid-March he reiterated his buy rating on public trading markets operator Moscow Exchange. Its share price had plummeted 31.4 percent in 2014, to 49.13 rubles, which Shlemov deemed an “attractive entry point for a defensive story with revenue stream diversification.” Through May, Moscow Exchange rallied to 65.75 rubles, besting the sector by 7.4 percentage points. “Shlemov has a fine mind and thinks long term, like an investor,” insists one money manager.


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