June 14, 2011

Astarta’s aggressive expansion plans and the bullish outlook for Ukrainian sugar prices over the remainder of 2011 point to a continuation of the company’s reign as one of the world’s most profitable sugar beet refiners. Ukrainian domestic sugar prices are at historically high levels and are likely to remain near their peak through the rest of this year. Accordingly, we expect Astarta’s revenues to grow by 54% YoY to USD 450mn, with EBITDA margin at 31%, or nearly 2x higher than its peers’ median. Astarta trades at 2011E P/E of 7.4x, a 52% discount to its peer group’s median. We reiterate our BUY recommendation on Astarta and raise our target price to USD 39.9 per share, which implies an upside of 28.7% to the stock’s current price.