LUKOIL PJSC last = 4738 RUB 1w: +107 (2.3%)
% vs. spot / Price1M6M12MLT(2Y)LT(3Y)
Target Price (consensus)-0.6%-1.7%---
Upside (Bull Case)0.7%2.2%---
Downside (Bear Case)-1.9%-5.7%---

In spite of the market worries about the cut down of the Lukoil's development drilling, I expect that Company's strategy to reduce CAPEX for the purposes of FCF generation is really a positive development for minority shareholders. This suggests that the Company focuses on cash return to shareholders, which I believe will provide an average annual DPS growth of 20% and an 8% average dividend yield growth over 2018-2020. Therefore I strongly recommend to buy the Lukoil's shares.