Raspadskaya Gains to 18-Month High on Ratings, Price Estimates

OAO Raspadskaya jumped the most in almost four months as Citigroup Inc. recommended buying the stock of the Russian producer of coking coal and Troika Dialog upgraded its price estimate.

The shares rose as much as 9.2 percent to 179 rubles ($6.08) on the ruble-based Micex Stock Exchange, the biggest advance since Sept. 25, and were up 6.2 percent at 174 rubles as of 11:15 a.m., bringing the stock’s gain in the past four days to 19 percent. A close at its latest price would be the highest since July 24, 2008. On the dollar-denominated Russian Trading System, Raspadskaya soared 7.6 percent to $5.80.

Citigroup initiated coverage with a “buy” recommendation and price estimate of $7.50, saying that the company would benefit from recovering steel-industry demand for coking coal in the former Soviet Union. Troika Dialog, Russia’s oldest investment bank, raised its price estimate 31 percent to $6.80.

Raspadskaya plans to release preliminary operating results for the fourth quarter and the full year today, the company said in a statement.

To contact the reporter on this story: Jason Corcoran at Jcorcoran13@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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