Two months after Goldman Sachs helped AFI Development float in London at $14 per share, it's set the Africa Israel (TASE: AFIL) subsidiary a 12-month price target of just $13.10.
The investment bank started coverage of AFI Development, which invests in Russia's real estate sector, with a Buy rating.
The thing is that AFI Development stock has lost 20% of its value since its initial public offering. The price target is 17% above the company's share price in London, where AFI Development ended the Thursday session at $11.20.
The company went public at a market valuation of $7.3 billion and despite the heavy demand for its stock, it lost 8% on its very first day of trading. Its market capitalization is not $5.9 billion.
Goldman Sachs was part of a consortium of underwriters that also included Deutsche Bank, Morgan Stanley, and Citi.
AFI Development was founded six years ago and is involved in 21 projects at 12 sites, mainly in the greater Moscow area. Recently the company also began operating in St Petersburg, Volgograd and other areas.
Ironically, AFI Development is not trading at the pricing level that the company had initially discussed during its road show. It set its range at $10 to $13 per share but demand sent the share price rising to $14.
