Equity Analysis /
Russia

HeadHunter: Initiation of coverage: attractive play on the Russian enterprise digital transformation

    Olesya Vorobyeva
    Olesya Vorobyeva

    Analyst, TMT, Agro and Retail

    Anna Kurbatova
    Anna Kurbatova

    Senior Analyst, TMT & Agro

    Alfa
    15 August 2019
    Published by
    We initiate coverage of HeadHunter Group plc with an Overweight rating (O/W) and a 12M target price of $21.5 per ADS. HHR has appreciated 39% from its IPO price of $13.5. However, in our view, the growth potential of hh.ru by scale and monetization is not fully priced in. We see 15% upside potential in the stock and note HeadHunter’s outstanding combination of top-line growth and profitability across the entire online classifieds peer group. On the flipside side, HHR might lack sufficient short-term upside catalysts unless the company upgrades its full-year guidance and/or declares an interim dividend along with its 2Q19 results publication in September.