Event: According to Kommersant, Rambler will launch its new search engine within the next two-to-three weeks. In addition, the plan is to launch a new video service with video-content search. The main portal re-design is scheduled for the autumn. According to the report, the investment into the new search will amount to $25mn over the next few years.

Action: We reiterate our BUY rating and $36.20 target price.

Rationale: At its analyst's presentation in February, Rambler announced plans to launch its “Hybrid” search product. The aim is to invest in key search verticals, such as price comparison, jobs, autos, classified, personal finance etc, where strong revenue or user-traffic upside exists. In search, Rambler is now the number-three player having underperformed Google, and while we expect this trend to continue we believe advertisers want a strong third player. Assuming Rambler's new technology allows it to catch up quickly, then we are cautiously optimistic that it can assume this role. The relaunch of the homepage is designed to better define Rambler's value proposition, namely in search, communications, news and as an internet roadmap. The relaunch appears to have been delayed, having initially been discussed last year and so here too it is essential that Rambler moves quickly to ensure its site keeps pace with market trends.