International media and experts generally positively assess Kyivstar’s listing on the Nasdaq stock exchange. They assess this move as a rare opportunity to invest in a Ukrainian technology company with high growth potential.
The company was valued at approximately $2.2 billion, and its EBITDA multiplier corresponds to the level of telecoms in Eastern European countries, despite the high risk associated with the war.
What was said about Kyivstar’s listing on Nasdaq
International media generally positively assessed Kyivstar’s listing on Nasdaq as a historic step for Ukrainian business.
Reuters noted that Kyivstar became the first Ukrainian company to be listed on a US stock exchange. CEO Oleksandr Komarov noted in a comment to the publication that a peace agreement between Ukraine and Russia could significantly increase the company’s value.
The listing on Nasdaq was chosen to strengthen ties between Ukraine and the United States, in particular through a partnership with Starlink and the involvement of former US Secretary of State Mike Pompeo on the board of directors.
The Financial Times emphasized that Kyivstar became the first purely Ukrainian investment opportunity on the US stock markets and that the listing symbolized a chance for investors to participate in Ukraine’s economic recovery.
Bloomberg noted that Kyivstar shares rose rapidly after their debut on the exchange. Investors reacted actively to news of a possible end to the war. Journalists also noted that the company itself is focusing on fast-growing digital areas, in particular healthcare (Helsi) and taxi services (Uklon) to strengthen its business during the war.
What is being said about share prices now
Currently, analysts give different estimates of the potential value of KYIV shares after Kyivstar’s listing on Nasdaq.
On Nasdaq, the company’s shares are traded under the ticker KYIV. On the day of listing, the price of one KYIV share was $11.52, as of November 25 – $13.63.
The American platform Benzinga, which provides analytics and tools for traders and investors, calculated the average target price for Kyivstar shares at $17.06 based on the forecasts of five leading analysts:
The most optimistic forecast among all analysts is given by Oppenheimer & Co. Inc (provides asset management and investment banking services) – $20 per share
The most pessimistic forecast was made by Rothschild & Co (a multinational private investment company and the flagship of the Rothschild banking group) – $15.3 per share.
The Israeli analytical platform TipRanks (provides market analytics and forecasts from analysts to help investors) also estimates the growth potential at about $17 per share.
The GuruFocus platform for investors, which provides stock analysis tools, currently rates Kyivstar shares as undervalued. Therefore, it recommends buying Kyivstar shares, because the price is currently profitable and will likely rise to $16.
Financial forecasts and company development
According to SimplyWall (a platform for investors that provides stock analysis and market trends), analysts predict Kyivstar’s revenue growth by ~7.1% annually, and profit by ~11.5% annually. The forecast for return on equity (ROE) is ~36.3% in 3 years. However, SimplyWall also notes that EPS (earnings per share) may decline.
The media also note the rapid growth of the company’s financial indicators: EBITDA increased by more than 50%, and the multi-profile user base reached over 6 million. Kyivstar is actively expanding its digital segments, acquiring taxi and healthcare platforms, creating an ecosystem of digital services. This strategic development attracts the attention of investors looking for investments in markets with potential.
Geopolitics and risks
Analysts note that the future value of the shares will strongly depend on the geopolitical situation. Kyivstar’s CEO told Reuters that a peace deal between Ukraine and Russia would “significantly increase the company’s value.”
According to Komarov, Kyivstar could be “the best asset for the international investment community” to invest in Ukraine’s recovery if there is peace.
Analysts and investors do see peace (or an improvement in the geopolitical situation) as one of the key drivers of Kyivstar’s potential value realization. For example, Ainvest calls Kyivstar’s listing a “geopolitical sign”—the company’s Nasdaq listing signals a Western orientation and support from investors who see it as part of Ukraine’s recovery.
