Update shared on05 Oct 2025
Fair value Increased 2.08%Millicom International Cellular's analyst price target has risen slightly from approximately $45.57 to $46.51. Analysts cite improved valuation alignment with peers but note that a softer growth outlook and lingering acquisition-related debt temper expectations for future performance.
Analyst Commentary
Recent analyst updates reflect a nuanced outlook for Millicom International Cellular, as positive developments in valuation and strategic initiatives are weighed against challenges related to growth and debt management.
Bullish Takeaways
- Bullish analysts note that Millicom's valuation is now more closely aligned with peers in the Latin American telecom sector. This reflects improved market confidence.
- There is optimism regarding Millicom's well-established position in its regional markets. This supports the company’s potential for stable operational performance.
- The potential for an accretive deal in Colombia is viewed as a possible catalyst for future value creation. However, expectations may already be reflected in the current share price.
- Raising of price targets in multiple research notes signals constructive sentiment in light of strategic shifts and business transformation efforts.
Bearish Takeaways
- Bearish analysts highlight that Millicom continues to exhibit the softest growth outlook compared to its Latin American peers. This casts some doubt on future earnings momentum.
- The company’s heavy interest burden, stemming from four major recent acquisitions, is seen as a potential drag on profitability and cash flow.
- Execution risk remains significant, and an impressive turnaround strategy is needed to effectively offset acquisition-related debt concerns.
- There is a sense that the market has already priced in some potential upside from pending transactions, which may limit the scope for near-term valuation re-rating.
What's in the News
- Millicom International Cellular completed the repurchase of 5,482,441 shares, totaling 3.21% of outstanding shares, for $150.65 million under its buyback plan announced on December 16, 2024 (Key Developments).
- No shares were repurchased between April 1, 2025 and May 21, 2025. This closes out the current tranche of the buyback program (Key Developments).
Valuation Changes
- Consensus Analyst Price Target increased slightly, rising from $45.57 to $46.51.
- Discount Rate decreased modestly from 6.66% to 6.59%. This reflects a minor reduction in perceived risk.
- Revenue Growth projection remained virtually unchanged at approximately 1.71%.
- Net Profit Margin estimate held steady at around 10.65%.
- Future P/E ratio forecast rose slightly, moving from 13.55x to 13.81x.
Disclaimer
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