Airtel Africa: 72% Upside Potential Spotted on New Target Price
With 72% upside potential spotted, a Lagos-based investment firm, CardinalStone Securities Limited, has slightly reduced its target price for Airtel Africa Plc following a revision to its estimate.
The investment firm hinted that the telecom company is relatively cheaper versus peers in the Middle East and Africa at the current stock market price.
Airtel Africa Plc share price settled at N2,270 in the equities market, the position the telecom company had maintained over a long period in 2025.
In spite of its solid earnings growth, Airtel Africa’s share price was stagnant; the telecom stock rarely moved, which suggests its attraction to a certain investor profile category. Airtel Africa responded faintly to earnings and even dividend payments with thin trading activities.
Its market stagnation happened after buyback programmes reduced Nigerian shareholders significantly. The telecom company also ramped up shares from the London Stock Exchange for most of 2025.
The Nigerian Exchange (NGX) valued Airtel Africa’s 3.758 billion outstanding shares in the local bourse at N8.531 trillion, which is 4% below its highest valuation attained in 52 weeks.
Airtel Africa Plc’s H1-2025/2026 results showed a solid rebound, supported by tariff adjustments in Nigeria, sustained subscriber growth and rising data usage across the Group, and a more stable macro backdrop in several key markets, CardinalStone Securities Limited said in its equity report.
Equity analysts highlighted that the telecom company’s revenue grew 25.8% year on year to about $3.0 billion, reversing the 9.7% year on year contraction recorded in the prior period.
The report noted that the company’s data revenue overtook voice to become the largest contributor to group revenue, reflecting the continuous shift to a more data-centric business model.
“These improvements, alongside insights from discussions with management and revisions to our valuation assumptions, including a lower equity risk premium (13.8% vs. 14.3% previously), prompted a recalibration of our forecasts.”
CardinalStone adjusted its 12-month target price to N3,904.82 and maintained its rating on AIRTELAFRI, adding that this is slightly lower than its previous target price of N3,906.75, largely due to currency appreciation.
Analysts said this implies a potential upside of 72.0% from the current market price of N2,270.00. “The modest adjustment reflects our continued confidence in the company’s near-term growth trajectory and improved valuation metrics.
“Notably, yields on Nigeria’s 10-year Eurobond (risk-free rate) and the equity risk premium have declined to 7.7% and 13.8%, respectively, from 10.4% and 14.3% previously, indicating lower country risk premia, although the appreciation of the Naira tempered valuation slightly.”
The firm estimates suggest Airtel Africa trades at a discount to its peers, reinforcing its compelling relative value. Naira Rallies Ease Corporate Foreign Payments Burden
