MTN Nigeria Shrinks to N4trn as Investors Take Profit
MTN Nigeria Plc (Ticker: MTNN) market value fall back to N4 trillion range as sell side activities on the telecommunication company slightly heated up.
The stock which opened at N199.80 per share at the beginning of the trading session last week was priced lower to N191 on Friday.
Trading at more than 40% discount to its 52-week high, MTN Nigeria Plc is significantly cheaper versus its earnings potential.
The telecom stock is however rated buy across the Broadstreet due to strong fundamentals and speed to correct negotiation error –matching local revenue with huge FX liabilities.
The telecom companies became profit taking target for investors who quickly sell down their interest as FX liabilities exposure damaged MTN Nigeria earnings performance.
To reduce its earnings downturn, which has also plunged the telecom company’s shareholders to negative, management has successfully renegotiated its tower deals.
Analysts are projecting that pressure on MTN Nigeria Plc will reduce in the coming quarters, though a round of earnings losses could keep the company on a tight rope – in the short term.
At the end of the trading session on Friday, the market put N4.01 trillion on MTN Nigeria’s 20.995 billion shares outstanding in the local bourse. # MTN Nigeria Shrinks to N4trn as Investors Take Profit
