ING Cuts Pyaterochka Target Price

ING downgrades Pyaterochka 12-month target price to $17.1 from $18.9 on reduced '05 earnings guidance and "first signals of fundamental problems with the company's business format." Says robust growth in Russian disposable incomes is putting pressure on Pyaterochka's discounter format, and while management is trying to address this its efforts may hit operating efficiencies. Adds the recent Kopeika acquisition price was "unjustifiably high." Maintains hold on stock, currently -2.0% at $14.90 in London.

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