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Gazprom Rebounds as JPMorgan Lifts to Overweight: Moscow Mover

OAO Gazprom snapped two days of losses as JPMorgan Chase & Co. raised Russia’s natural gas export monopoly to the equivalent of buy, citing prospects for a Chinese deal and dividends.

The shares advanced 1.3 percent to 146.64 rubles by 2:16 p.m. in Moscow after falling 1.8 percent yesterday. The volume traded was equivalent to about 77 percent of the three-month average.

Gazprom rallied after JPMorgan raised it to overweight on the possibility of a gas contract with China and of switching to a dividend based on international reporting standards, according to an e-mailed note. The shares fell yesterday after Interfax reported Ukraine’s state-run energy company halted purchases from the natural-gas exporter.

“No other large cap stock in Russia offers better potential to double over the next three years than Gazprom, we believe,” JPMorgan analysts led by Artem Konchin said in an e-mailed note. “We see the company’s valuation as still undemanding, and its ability to generate cash remains intact.”

Gazprom’s global depositary receipts increased 0.5 percent to $8.88 in London.

To contact the reporter on this story: Ksenia Galouchko in Moscow at kgalouchko1@bloomberg.net

To contact the editor responsible for this story: Wojciech Moskwa at wmoskwa@bloomberg.net

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