Investing.com - Morgan Stanley initiated coverage on Kyivstar Group (NASDAQ:KYIV) with an Equalweight rating and a price target of $17.00, the firm said Friday. According to InvestingPro analysis, the stock appears undervalued at current levels, with analyst price targets ranging from $14.90 to $19.86.
Kyivstar operates as the leader in Ukraine’s three-player wireless market with 22 million subscribers, competing against Vodafone and lifecell. The company also serves 1.2 million broadband subscribers in a fragmented fixed-line market. The telecommunications provider boasts an impressive gross profit margin of 89%, reflecting strong operational efficiency in its core business.
The telecommunications provider has expanded into digital and technology assets, including Kyivstar TV with more than 430 channels, Helsi digital healthcare platform, Uklon ride-hailing and delivery platform, Tabletki healthcare products marketplace, and My Kyivstar self-service mobile app. The market remains 4G-centric with 5G trials currently underway.
Kyivstar became the first Ukrainian company listed on NASDAQ in August 2025. VEON holds an 84% equity stake in the telecommunications company as its largest shareholder.
Morgan Stanley estimates Kyivstar will deploy a cumulative 55% of its turnover in capital expenditures over 2025 and 2026. According to nPerf, Kyivstar operates the best network in Ukraine. For deeper insights into Kyivstar’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available for this and 1,400+ other US equities on InvestingPro.
In other recent news, Kyivstar Group Ltd reported a strong performance for the first quarter of 2026, surpassing earnings expectations. The company achieved an earnings per share of $0.37, compared to the projected $0.32, representing a 15.63% surprise. Revenue also saw a significant increase, reaching $323 million, which marks a 27% rise from the previous year. Additionally, Uklon, a ride-sharing platform owned by Kyivstar Group, initiated Ukraine’s first autonomous vehicle testing at Boryspil International Airport. This pilot program employs remote driving technology with onboard sensors and real-time connectivity, with human operators currently controlling the vehicles. These developments reflect Kyivstar Group’s ongoing efforts to innovate and expand its technological capabilities.
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