JPMorgan Bullish on Airtel Africa

Quick overview

JPMorgan changed its estimated evaluation of the company from Neutral to Overweight, increasing the Airtel Africa stock price target from GBP1.44 to GBP1.63.

Airtel Africa boasted a revenue of 4.36 billion dollars while maintaining a position as the second or first telecom operator in 13 of its fourteen markets in sub-Saharan Africa.

The company has been working on its 4G coverage to consolidate its mobile data market share.

JPMorgan highlighted increases expected in Airtel Nigeria’s margins, while an EBITDA margin reset is expected. Even though share price hikes are incorporated in the share price, the firm believes there is room for earnings upgrades, which is appealing for investors, as it paints a positive picture for future share price incentives.

The stock was believed to be trading at 12.3 times 12-month forward P/E The firm focused on globally dispersed assets with a primary focus on emerging markets, thereby indicating a surge of 31.3% compared to its historical value of 9.4 times.

JPMorgan remains bullish on Airtel Africa owing to the firm’s regulatory stance on the telecommunications matrix of sub-Saharan Africa and investments planned to capture new demand for mobile data services.

ABOUT THE AUTHOR See More

Olumide Adesina

Financial Market Writer

Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.

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