Loading...
Back to narrative

AAF: Future Profitability And Capital Returns Will Drive Further Upside

Starlink And Digital Fintech Will Expand Vast African Markets

AAF logo
AAF
AnalystHighTarget
Not Invested
Published 24 Aug 2025

Update shared on 21 Dec 2025

Fair value Increased 30%
n/a
n/a
AnalystHighTarget's Fair Value
n/a
Loading
1Y
206.6%
7D
4.3%

Analysts have raised their price target on Airtel Africa from 2.98 dollars to 3.88 dollars, citing higher expected profitability and a modestly richer valuation multiple, despite slightly softer long term revenue growth assumptions and a marginally higher discount rate.

What's in the News

  • Airtel Africa has scheduled a board meeting for January 29, 2026 to consider a potential change in its board of directors (company filing).
  • The company declared an interim dividend of 2.84 cents for the half year ended September 30, 2025, payable on December 12, 2025 to shareholders on the register as of November 7, 2025, with shares trading ex dividend from November 6, 2025 (company announcement).
  • On September 22, 2025 Airtel Africa extended the duration of its share buyback programme until March 31, 2026, signalling continued capital return to shareholders (company announcement).

Valuation Changes

  • The fair value estimate has risen from 2.98 dollars to 3.88 dollars, reflecting a higher assessed intrinsic value for Airtel Africa shares.
  • The discount rate has increased slightly from 6.82 percent to 7.07 percent, indicating a modestly higher required return applied to future cash flows.
  • The revenue growth assumption has eased slightly from about 20.6 percent to about 19.5 percent, suggesting a more conservative long-term growth outlook.
  • The net profit margin forecast has edged up from about 18.1 percent to about 18.6 percent, implying expectations of improved profitability.
  • The future P/E multiple has risen from about 10.3 times to about 12.7 times, pointing to a somewhat richer valuation for the company’s earnings.

Have other thoughts on Airtel Africa?

Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.

Create Narrative

Disclaimer

AnalystHighTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystHighTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystHighTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.