We reaffirm our Outperform recommendation for VimpelCom (VIP), Russia’s second largest cellular carrier with over 25% market share. Reported earnings in the last quarter outpaced the Zacks Consensus Estimate, driven by foreign exchange gains.

We continue to be intrigued by VimpelCom’s successful sales growth trend and its ability to retain subscribers on a recurring basis, even as overall economic factors remain weak. The company is also progressing well in expanding its 3G wireless and residential broadband network deployments, as reflected by healthy subscriber accretion in the last quarter.

Additionally, the ongoing expansion initiatives into emerging Asian markets (including Cambodia and Vietnam) are expected to boost opportunity in wireless, given the lower mobile penetration levels in these regions.Zacks Investment Research