LUKOIL PJSC last = 4429 RUB 1w: -170 (-3.7%)
% vs. spot / Price1M6M12MLT(2Y)LT(3Y)
Target Price (consensus)0.3%0.9%3.5% (4581.4)--
Upside (Bull Case)1.5%4.4%18% (5223.7)--
Downside (Bear Case)-0.9%-2.8%-11.3% (3928.1--

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.