Agriculture
April 15, 2011
Landkom, MCB Agricole and Sintal Agriculture: The Three Musketeers - With this report we initiate coverage of a trio of promising mid-cap Ukrainian agricultural companies. We assign BUY ratings to MCB Agricole and Landkom International with respective target prices of USD 4.53 and USD 0.119. The main investment story for Landkom is a likely turnaround under the leadership of new CEO Vitaly Skotsyk. MCB Agricole is a company which has been overlooked by the market, in our opinion, trading at 2011E P/E of just 2.8x. We kick off our coverage of Sintal Agriculture with a HOLD rating and a target price of USD 4.33 per share. While the company’s fundamentals are impressive, we believe it is fairly valued at 2011E P/E of 14.3x.
