An analyst advised to buy shares of Ukraine's Kyivstar. What driver did he see?

Rothschild & Co analyst Redburn has started tracking shares in Kyivstar, one of Ukraine's leading mobile operators, and immediately gave advice to buy them. The investment firm believes that the company continues to build market share and demonstrates resilience even in the face of war: it could be a relatively inexpensive way for investors to participate in Ukraine's recovery. In August, Kyivstar became the first ever Ukrainian company to be listed in the US.

Analyst Rothschild Redburn initiated coverage on Kyivstar shares with a Buy recommendation and $15.3 target price, Investing.com reports. Rothschild Redburn's target suggests that the market value of the company, which listed on the Nasdaq exchange on August 15, 2025, will grow by about 40%. The analyst emphasized that Kyivstar demonstrates a strong position even amid the war and continues to increase its market share. He cited the company's leadership in the Ukrainian telecom segment, high margins, stable cash flow and active development of digital services as key growth drivers, which opens up the potential for profit growth "unavailable to most operators in developed countries".

If Ukraine emerges from the war with its sovereignty intact, Kyivstar could be a relatively inexpensive way for investors to participate in the country's massive rebuilding, Rothschild Redburn also noted in a statement from TipRanks.

In trading on September 15, Kyivstar shares fell by 4.4% to $10.47. The company's shares are now 5% cheaper compared to their first day of trading in the United States on August 15.

"Kyivstar went public by merging with another already public company, Cohen Circle Acquisition. The operator became the first Ukrainian company with a US listing. But it failed in its debut trading: its shares fell by 9%. However, on the next trading day they soared by 17%.

In addition to Rothschild Redburn, Kyivstar shares were also rated by analysts at New Street, according to MarketScreener. New Street also advises investors to buy securities of the operator with a target price of $16 per unit. This is 46% higher than the closing level on September 12.

This article was AI-translated and verified by a human editor