OREANDA-NEWS. March 03, 2010. CEDC posted FY09 revenues of USD1,507, which is 5% below the BBG consensus. Adjusted net income was USD 127.9m, a figure in line with our estimates but 15% below the BBG consensus. Guidance for 2010 EPS was reduced on the back of a dilution from USD 3.00- USD 3.15 to USD 2.50- USD 2.62. The guidance of USD 340m for 2010 EBITDA is in line with BBG consensus, reported the press-centre of OTKRITIE Financial Corporation.

View: We see no reason for a fundamental change in the outlook for the stock. Positive triggers might come from stronger 1Q10 results, the disposition of distribution business, or from the acquisition of Nemiroff.

Valuation: The stock trades on a 2010 EV/EBITDA of 9.7 x, which is a 37% discount to EM peers.

Action: Though the results are in line with consensus, the lower 2010 guidance might be taken negatively by the market. We recommend using any weakness in the stock as a buying opportunity.