Update shared on04 Sep 2025
Fair value Increased 1.02%Analysts remain cautiously optimistic about Millicom International Cellular’s turnaround strategy and growth potential following major acquisitions, but highlight elevated interest burden and execution risks, resulting in an unchanged consensus price target of $44.06.
Analyst Commentary
- Bullish analysts are raising price targets reflecting expectations of an impressive turnaround strategy from Millicom.
- The completion of four major acquisitions (UNE-EPM, Coltel, TEF Ecuador, and TEF Uruguay) positions the company for potential growth.
- The company faces a significant interest burden following these acquisitions, which management must address successfully.
- Positive sentiment is contingent on the execution of the turnaround to ensure earnings improvement and debt management.
- Analysts maintain a neutral sector view, indicating that improved performance is not yet fully priced in and execution risk remains.
What's in the News
- Millicom International Cellular added to multiple Russell indices, including the Russell 1000, 2500, 3000, Midcap, Small Cap Completeness, and several value benchmarks, expanding its index inclusion significantly.
- The company has completed the repurchase of 5,482,441 shares, representing 3.21% of its share base, for $150.65 million under the previously announced buyback program.
- A special interim cash dividend of $2.50 per share was announced, to be distributed in two equal installments, representing approximately 45% of net proceeds from a recent transaction.
Valuation Changes
Summary of Valuation Changes for Millicom International Cellular
- The Consensus Analyst Price Target remained effectively unchanged, at $44.06.
- The Consensus Revenue Growth forecasts for Millicom International Cellular remained effectively unchanged, at 1.7% per annum.
- The Discount Rate for Millicom International Cellular remained effectively unchanged, at 6.70%.
Disclaimer
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