Stock market review for May 13, 2021

The trading dynamics was multidirectional. Pressure on the market was exerted by the external background, with oil price rising almost to $70 per barrel. The leaders of growth were (ROSNN 548.6, -3.12%). TCS (TCSG 4,670, -3,62%) were the outsiders against the comments of analysts after the publication of the report and within the industry dynamics. The USD/RUB pair traded in the range of 74.0-74.50.

(RTKM 102.09, -1.36%) will report for Q1. The company's revenues are expected to reach 133 billion rubles, EBITDA - 26 billion rubles. Thus, the growth rate of the business will be about 9% and will be maintained at about 10% in the future. However, in our opinion, the investors' reaction to the statements of Rostelecom will be reserved, taking into account weak dynamics of the telecoms stocks in the nearest weeks and the interest of market participants to other sectors. The target price of the paper for the end of the year is 120 rubles.

(AFLT 65.9, -0.63%), spec. buy, target: 74 rubles. We expect the company to resume ticket sales to many destinations, including overseas, and increase the number of flights this summer. If strict quarantine restrictions in the European countries are lifted, the Aeroflot traffic may reach record levels in Q3 2021. The resumption of flights to Southern European countries may be announced as early as next week.

We expect mixed dynamics. USD/RUB range: 73.50-74.50. Benchmark for the Mosbirch Index: corridor of 3650-3700 points.