Cheapest Russian Stocks in Two Years Are Still Too Dear for Some
- Investors defy earnings upgrades as valuation to peers drops
- Worsening relationship with U.S. voids gains since 2014
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A combination of bullish analysts and bearish investors has pushed the potential returns on Russia’s stock market to the highest level since a currency crisis more than two years ago.
For every $100 invested in Moscow-listed companies, shareholders will get back $17 in the form of corporate profits over the next 12 months, according to analyst estimates compiled by Bloomberg. That’s twice the returns they can earn from Russian sovereign bonds or broader emerging-market stocks.