13 US stocks exposed to Russia and 6 that could benefit
US companies are fleeing Russia, which could create headwinds in the future. For companies in countries that have not imposed sanctions, however, this could be a long-term opportunity.
Since Russia invaded Ukraine, American companies have announced their intention to leave the country.
waltz disney(DIS) will not release its films;
Apple (AAPL) will not sell its iPhones, and
Ford engine (F) will stop making cars. For the most part, the hit will prove intangible – Russia is simply too small a market to make such a big difference.
But not for everyone.
Citigroup the strategists selected companies with exposure to Russia and found 60 globally. These companies, in total, have fallen 17% this year, more than double the MSCI All-Country World Index, which fell 8%.
Citigroup highlighted 13 companies in the United States. They include Coty (COTY), which makes 2.5% of its sales in this country,
PepsiCo (PEP), which generates 4.5% of its sales there, and
FleetCor Technologies (FLTN), which derives about 4.5% of its revenue from Russia. Oil service companies
hugue baker (BKR),
Schlumberger (SLB), and
Halliburton (HAL) are on the list, as is the materials company
Corteva (VAT) and basic consumption
Mondelez International (MDLZ). Round it up are
Management of grid dynamics (GDYN),
Epam systems (EPAM),
Inter Parfums (IPAR),
HerbalifeNutrition (HLF), and
Brown Forman (BF.B). If the sanctions remain in place, these companies may have to look elsewhere to offset these sales.
Citigroup’s Robert Buckland notes that companies in countries that haven’t imposed sanctions could ultimately benefit. “The impact of the current crisis could vary depending on the main rating of the company,” he writes. “For example, companies based in countries that have not introduced sanctions against Russia (e.g. China, India) will see their business affected by short-term economic disruptions, but may be offered long-term opportunities.”
Chinese and Indian companies on the list include
Geely Automotive Holdings (0175.Hong Kong),
Great Wall Engine (2333.Hong Kong), Yentai Jereh Oilfield Services Group (002353.China),
Petroleum and Natural Gas Company (CGSB.India),
Dr. Reddy’s Laboratories (RDY), and
Universal Carborundum (CRBR.India).
Write to Ben Levisohn at [email protected]