MTN Nigeria Plc Share Lower to Sell Rating
Ahead of second quarter of 2024 earnings result of the telecommunication giant, MTN Nigeria Plc, Apel Asset Limited, has reduced the company share to sell.
In its weekly stock recommendation, the investment firm revealed that the telecom stock has negative upside potential. The firm pegged the telecom share fair value at N132.67, suggesting that Ticker: MTNN is overpriced at the current market rate of N200.
Hence, the investment firm estimated 36.67% downside for MTN Nigeria PLC after the company’s unimpressive earnings performance in financial year 2023.
Weak earnings performance extended to the first quarter of 2024 while projections showed that MTN Nigeria Plc could see further profit pressures in the second quarter as naira fluctuation swings to downside.
MTN Nigeria has lost 24.24% year to date due to rapid selloffs in the local stock exchange, reflecting negative investors’ perception about the telco’s future earnings stream under the current condition.
Apel Asset Limited said in its stock recommendation that the company’s return since 2022 is negative at reference price of N200 per share.
MTN Nigeria Plc’s market value settled at about N4.2 trillion, according to data from the Nigerian Exchange ahead of anticipated earnings announcement.
The telecom company share is trading flattish at N200 at noon on Tuesday in the stock market. Universal Insurance MD Expresses Challenges on IFRS 17 Adoption
