Low-Cost Competition And High Capex Will Weaken Latin American Networks

Millicom International Cellular’s analyst price target has increased notably from $46.51 to $49.14, as analysts cite valuation improvements relative to Latin American peers. This comes despite a softer growth outlook and ongoing interest concerns.

Analyst Commentary

Recent analyst coverage underscores both strengths and risks in Millicom International Cellular’s current trajectory. The revised price targets highlight improved valuation relative to peers, but there are key differences among analysts regarding the company’s future prospects.

• Bullish analysts note that Millicom’s valuation has now aligned with its Latin American peers, reflecting recognition of the company’s intrinsic value.
• There is optimism about Millicom’s strategic positioning within its core regions, which supports its long-term growth potential.
• The potential Colombia deal is described as accretive and may offer an opportunity for further upside if executed successfully.
• Recent price target hikes reflect confidence in the company’s ability to create value despite a challenging environment.

• Some analysts express concern that Millicom shows the softest growth outlook compared to its Latin American competitors.
• The heavy interest burden from recent major acquisitions presents execution risks and could pressure profitability.
• Cautious analysts indicate that positive developments, including the Colombia transaction, may already be reflected in the market price, limiting further upside.
• Delivering a substantial turnaround strategy is considered critical to offsetting these pressures and maintaining a favorable valuation.

What's in the News

• Millicom completed the repurchase of 5,482,441 shares, amounting to 3.21% of its outstanding shares, for $150.65 million as part of the buyback program announced on December 16, 2024 (Key Developments).
• From April 1, 2025 to May 21, 2025, no additional shares were repurchased under the ongoing tranche. The total spend for that period remained at $0 million (Key Developments).

Valuation Changes

• Consensus Analyst Price Target has risen from $46.51 to $49.14, indicating increased confidence in the company's fair value assessment.
• Discount Rate has increased slightly from 6.59% to 6.61%, reflecting a marginal uptick in perceived risk or capital cost.
• Revenue Growth expectation has improved from 1.71% to 1.83%, suggesting upgraded growth projections for the company.
• Net Profit Margin has edged down from 10.65% to 10.59%, showing a minor reduction in expected profitability.
• Future P/E ratio has climbed from 13.81x to 14.63x, signaling a somewhat higher valuation relative to forecast earnings.