Analysts have modestly raised Millicom International Cellular's price target to $45.57 as its valuation premium versus peers has diminished and growth remains subdued, with potential deal upside already reflected and high interest costs highlighting the need for successful execution of its turnaround strategy.
Analyst Commentary
- Valuation for Millicom has caught up with regional peers, eroding its previous discount advantage.
- Growth outlook for Millicom is softer compared to other Latin American telecom companies.
- Potential value from the Colombia deal is considered largely priced in by the market.
- Heavy interest burden resulting from major recent acquisitions (UNE-EPM, Coltel, TEF Ecuador, and TEF Uruguay) remains a concern.
- Successful execution of a turnaround strategy is needed to offset these financial pressures and justify higher price targets.
What's in the News
- Millicom International Cellular completed the repurchase of 5,482,441 shares (3.21% of outstanding) for $150.65 million as part of its buyback program.
- The company was added to numerous Russell indices, including the Russell Midcap, Midcap Value, 1000, 1000 Value, 2500, 2500 Value, 3000, 3000 Value, 3000E, 3000E Value, Small Cap Completeness, Small Cap Comp Value, and 1000 Dynamic benchmarks.
Valuation Changes
Summary of Valuation Changes for Millicom International Cellular
- The Consensus Analyst Price Target has risen slightly from $44.51 to $45.57.
- The Future P/E for Millicom International Cellular has risen slightly from 13.25x to 13.55x.
- The Discount Rate for Millicom International Cellular remained effectively unchanged, moving only marginally from 6.68% to 6.66%.
Disclaimer
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