MTN Nigeria Shrinks as Investors Sentiment Wanes Ahead of Q3
Telecom giant MTN Nigeria Plc’s market value declined by 3.44%, which is approximately N315 billion, as investors trimmed their shareholdings in the telecom company.
The telecom company’s market value surpassed N10 trillion after the management released the first half of 2025 earnings. While the earnings pumped MTN Nigeria, investors seeking to take profit then dumped the stock.
The pump and dump of the share price has pulled the company’s market value down sharply in a few weeks, while Q3 earnings release is anticipated to fuel another rally.
Last week, MTN Nigeria lost 3.44% of its market value, which translated to N314.993 billion, as investors dumped telecom stock ahead of third quarter earnings season.
Transaction volumes were huge, including block deals. Investors were noted to be adjusting positions amidst its dividend holiday and the latest equity analysts’ ratings on telecom stocks.
While noting that the industry’s fundamentals have improved, uncertainties relating to tight macroeconomic conditions have been noted to negatively impact earnings. Equity analysts projected that MTN Nigeria will resume dividend payment in 2026 as shareholder funds remain under pressure.
Afrinvest Securities Limited anticipates 1.5% upside potential in MTN Nigeria. This suggests the telecom stock has been overbought, and analysts advised investors to stay neutral with MTN Nigeria, set target price of N441.37 last week.
Rated buy, Cowry Asset Limited remains bullish on the telecom company, setting the price target at N562.80. The firm estimated 34% upside for MTN Nigeria on N26.48 earnings per share forecast.
Apel Asset Limited estimated 4.75% upside potential and kept MTN Nigeria in hold bucket, guiding investors to maintain a neutral position in trading the stock.
Equities analysts at the firm estimated N455.57 as MTN Nigeria’s fair value. Last week, MarketForces Africa reported that the telecom company delivered a 117.50% year-to-date return to investors. #MTN Nigeria Shrinks as Investors Sentiment Wanes Ahead of Q3 Wema Bank Drops by 12% as Investors Exit Huge Positions
