The Russian payments company delivered high-quality growth in the quarter and was able to report a solid earnings beat on the back of operating leverage, despite investments into new divisions, according to JPMorgan.
Alexei Gogolev upgraded Qiwi from Neutral to Overweight and raised the price target from $19 to $20.
Qiwi reported 31-percent year-on-year revenue growth for the first quarter.
Its EBITDA surged 61 percent to 2.3 billion rubles ($35.6 million), 34 percent higher than the consensus estimate.
Net income rose 53 percent to a record high quarterly net income figure in the company’s history, Gogolev said in the Thursday upgrade note. (See his track record here.)
Qiwi’s core verticals achieved solid revenues, backed by volume growth, the analyst said. Both e-commerce and money remittance outperformed during the quarter, with volumes up 79 percent and 36 percent, respectively.
This may have resulted in market share gains, Gogolev said.
Qiwi raised the revenue growth and net income guidance for 2019 from a range of 0-8 percent to 9-15 percent and from 15-25 percent to 40-50 percent, respectively. The guidance now implies potential dividend upside of around 20 percent, the analyst said.
“While the company is yet to announce the new CFO, we are encouraged by improving operating trends."
Qiwi shares were rallying by 14.81 percent to $15.66 at the time of publication Thursday.
30 Stocks Moving In Thursday's Pre-Market Session
Earnings Scheduled For May 16, 2019
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