Kyivstar Group: Strategic Renewable Expansion and Disciplined Capital Deployment Underpin Buy Rating

In a report released yesterday, Jesse Sobelson, CFA from BTIG maintained a Buy rating on Kyivstar Group, with a price target of $17.00.

Jesse Sobelson, CFA has given his Buy rating due to a combination of factors tied to Kyivstar Group’s strategic expansion into renewable energy and its disciplined capital deployment. He views the acquisition of SUNVIN 11 as an early but meaningful step toward bolstering energy self-sufficiency, improving cost visibility, and enhancing operational resilience in a challenging operating environment. By effectively offsetting a portion of its electricity needs through a solar plant located outside active conflict zones, Kyivstar is creating a practical, though not formally structured, hedge against future energy price volatility.
At the same time, Sobelson emphasizes that the transaction is small relative to Kyivstar’s cash resources and revenue base, limiting financial risk while offering upside through expertise and capabilities in the renewable sector. He notes that management is not pursuing renewables for optics alone but is applying strict asset-level return criteria and refraining from announcing aggressive, unfunded expansion targets. This methodical approach, combined with Kyivstar’s broader digital transformation and infrastructure strategy, supports his view that the SUNVIN deal is part of a sustainable, cost-effective growth path rather than a one-off move. Overall, these dynamics contribute to his conviction that the long-term risk/reward profile of KYIV shares remains attractive, justifying a Buy rating.