Yandex (YNDX) is trying to adjust as Russian companies continue to grapple with many problems because of sanctions on the country over its war with Ukraine. Yandex is considering shutting its grocery delivery business in France and selling its operations in the UK, according to a Bloomberg report.
Yandex is Russia’s largest technology company. It offers Google-type internet search engine and other online services. It also provides cloud computing, Uber-like ride-hailing, and food delivery services.
The grocery delivery business operates under the Yango Deli brand. In addition to France and the UK, the service is also available in Russia and Israel. It offers express deliveries, getting orders to customers in only a matter of minutes.
“The ultrafast delivery market in London is highly competitive and we see a considerable amount of interest in our business there, including from peers,” Bloomberg quoted a Yango Deli spokesperson as saying, without confirming or denying the plan to dispose of certain operations in Europe.
Tough Times for Russian Companies
Business has become difficult for Russia’s multinationals like Yandex amid the sanctions. Buyk and Fridge No More, the other Russian grocery delivery services like Yango Deli, have had to shut down as the business environment has become challenging.
What Does Yandex’s Plan Mean for the Stock?
Trading in Yandex stock in the U.S. has been suspended since February, in a decision tied to sanctions on Russia. But trading in the stock continues in Moscow. Closing the grocery delivery business in France may help Yandex drop some operating costs, and selling the UK operation may help it raise some cash.
The company is in need of money to deal with its debt. Disposing of certain assets to tackle the debt problem that poses significant risk to Yandex’s future may at least ease some investors’ concerns about the stock.
Wall Street’s Take
The Street is cautiously optimistic about Yandex stock with a Moderate Buy consensus rating. That’s based on two Buys. The average Yandex price target of $74.50 implies 293.4% upside potential to current levels. Shares have declined 69% year-to-date.
Blogger Opinions
TipRanks data shows that financial blogger opinions are 100% Bullish on YNDX, compared to a sector average of 69%.
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