Gazprom - good time to form long-term position.Greetings everyone!
"All wars, even if they are centuries old, always end in one thing - negotiations and peace"
Alexander Ivanovich Lebed.
The spat between Europe and Russia over the conflict in Ukraine served as a catalyst for a reassessment of the gas giant's prospects. Share prices currently reflect the company's weak position in Europe, a costly pivot to eastern consumers and increased tax pressure.
Under these conditions, it is quite difficult for standard analysts to look forward with a positive outlook, but that is exactly what should be done.
This conflict showed that traditional business relationships will always find a way to complete a transaction, even at increased costs. The “Business as Usual” model will remain the most popular as long as humanity continues to value money.
Gazprom is the legal successor of the gas infrastructure of the Soviet Union; moreover, it implemented new projects in this area by creating Nord Stream 2 and Turkish Stream.
Having such capacities, the company is able to offer the best price on the European gas market and reach consumers.
"We positively assess Gazprom's chances of returning to the European market and restoring Nord Stream 1 and Nord Stream 2"
Current price levels of 140 and below seem to be an excellent opportunity to form a position with a long-term target of 300. The average dividend for 5 years is 15.76, for 10 years 15.26. Undoubtedly, the record figures for 2022 distort this information, so taking 12 per share will show us the ability to hold shares at 8.5% per annum.
As a result, VokCapital expects the end of the conflict in Ukraine and the normalization of trade relations with Europe, the lifting of major sanctions against the Russian Federation and Gazprom.
