Shares of one of the largest Russian marketplaces Ozon have lost almost 40% of their value since the beginning of the year. Experts attribute such a dramatic downward shift to the growth of competition in the retail sector and the rise of consumer prices.
Chief Investment Director of our partner company Sigma Global Management, Vladislav Petlenko shared his assessment of Ozon’s investment prospects with a popular online platform for investment experts Fintalk:
“Despite the fact that it is currently unprofitable and investors should not expect profitability in the financial statements for the next three years, the company is in a growth phase.”
Although, according to the 3-rd qtr. 2021 report, Ozon’s revenue grew by more than 70% compared to last year and amounted to 149.67 billion rubles, the company's expenses also increased significantly, increasing the net loss by more than 200%, to 45 billion rubles.
At the same time, notwithstanding a significant drop in its value, the price volatility of Ozon shares is stable throughout the year and fluctuates in the range of plus or minus 8% per week. This is a good sign since stable volatility is exactly what investors, especially institutional ones, also expect from a potentially attractive stock.
Based on all this, it is fair to say that despite current losses and a high ratio of market value to book value, the value of Ozon shares is still underestimated. We estimate that they are trading at more than 30-40% below their fair market value.
At this point, we cannot make a buy recommendation, especially now that the world markets are going through a correction phase, and investors get rid of the risky assets, however, as the market stabilizes, Ozon stock could be a pretty good long-term investment with an over a three-year horizon.
To read the whole article, follow the link: https://fintolk.pro/ozon-jeksperty-rasskazali-chto-budet-s-akcijami-marketplejsa-v-2022-godu/