MTN Nigeria Rallies as Investors Bet on Earnings Outlook
Racing towards its upgraded target price, MTN Nigeria Plc gained about 5% in the stock market as investors began to raise stakes in anticipation of strong earnings expectations for the fourth quarter.
In the stock market, MTN Nigeria share price rose by 4.91% on the day as 2.196 million units of the telecom company shares valued at N1.098 billion were traded on Thursday.
This pushed up the market value of the telecommunication company’s 20.995 billion outstanding shares to N10.407 trillion as the market anticipates earnings to act as a fresh catalyst to drive a re-rating.
The telco company share now trades at about a 4.7% discount to its highest valuation in the local bourse in the last 52 weeks. Following its third quarter of 2025 earnings beat, a slew of equity research analysts updated their expectations on MTN Nigeria earnings for the year and 2026 by extension.
With significant market share, MTN Nigeria is expected to leverage its customer size to enhance its earnings performance. The company grew revenue by 57.5% in 9M-2025 earnings period.
Earnings per share printed at N35.77, of which the company paid N5 as a dividend, the first time in two years, as EBITDA margin printed at 51.4%.
The performance was driven by robust data demand, an expanding user base, price adjustments, and cost efficiencies from naira appreciation, disinflation, and revised tower leases, Cordros Securities Limited said in its equity research note.
“Following our review, we raise our year-end target price by 4.6% to N616.07/share from N588.74/share, implying a 29.7% upside from the current price of N475.00 as of Nov 18, and maintain our “BUY” rating on the stock.”
Considering the interim dividend declaration of N5.00/share, the investment firm now projects a total of N15.50/share as a dividend for 2025. #MTN Nigeria Rallies as Investors Bet on Earnings Outlook
