FINAM Investment Company recommends buying OAO Uralelectromed’s common stock, with the target price estimated at $124 apiece by the end of 2011. The company’s analysts believe the enterprise’s production facilities expansion plans and its increasing profitability will make Uralelectromed’s share price go up.

‘The company intends to launch its new copper electrolysis shop next year, which will upgrade its production capacity by nearly 40%. So, when it raises its annual copper output to 500,000 tons (which constitutes about 3% of the global consumption), Uralelectromed will become Russia’s largest copper-smelting business,’ FINAM says.

The company’s stock will also become more investor-appealing due to the business growing increasingly more profitable, the analysts report.

On the other hand, the non-transparent sales prices and lack of certainty regarding the future terms of the tolling agreements pose great risks for Uralelectromed’s financial performance, FINAM warns.