J.P. Morgan's Update on Vimpelcom & Orascom (VIP, OTLD)

J.P. Morgan is out with its update on Vimpelcom (NYSE: VIP) and Orascom (LON: OTLD).

J.P. Morgan writes, "We believe that the OT stock price currently discounts a price of closer to $2.5 bn, which means there could be material upside in a better scenario – our price target of US$6.00 at year end 2011 would be realistic in a scenario of US$5-6 bn. Uncertainty will remain high short term, though the selection of a reputed advisor by the government could help."

OTLD closed Monday at $3.92.

In a note to clients, J.P. Morgan writes, "We slightly reduce VIP EBITDA estimates ahead of 3Q10 results on slightly lower 3Q/4Q and 2011 margins, though upward revisions to associate income supports net income estimates."

VIP closed Monday at $15.80.