MTN Nigeria Soars to New High on Earnings Recovery
MTN Nigeria Plc has seen a strong market repricing of the company’s valuation in the equities segment of the Nigerian Exchange (NGX). The telecom company’s market value has increased by 16.02% in June, traded at N325 on Friday from N280.10 at the end of trading session last month.
Its previous selloffs experience has been altered by a strong earnings performance in the first quarter of 2025, thanks to regulator’s tariff hike adjustment.
A slew of equities analysts across the Broadstreet have formed a consensus that the telecom company earnings would reverberate in the coming quarters, and for financial year 2025 in the absence of significant economic, political or industry shocks.
Investors valued MTN Nigeria’s 20,995,560,103 shares at N6.823 trillion on Friday after more than 1.9 million units valued at NN626.076 million exchanged hands.
MarketForces Africa gathered that some foreign investors took position in the telecom company stocks last week. The strong bargain hunting reflected change in narrative that has continued to reverse weak sentiment on the stock.
MTN Nigeria Plc soared to a 52-week high, closed at N325 on Friday as investors began to return in anticipation of improved earnings performance in 2025.
Amidst the earnings healing, the telecom stock is probably going to reach Cordros Securities Limited equities analysts’ 12-month target price set at N363.01 as investors continue to get inside.
The telecom stock had bottomed due to past unimpressive earnings performance. The naira devaluation had a negative effect on the telecom company’s earnings till the end of 2024 reporting period.
The negative earnings caused investors to sell down stakes, and MTN Nigeria stock market plummeted.
Though; its shareholders’ fund is still negative, its performance has started getting better after Nigeria’s telecom regulator, NCC, approved a tariff hike for operators.
The tariff hike’s impact reflected in the first quarter earnings results. MTN Nigeria grew earnings per share to N6.38 in Q1-2025 from a loss per share of N18.63 in Q1-2024.
Analysts said the recovery in earnings was driven by a 40.5% year-on-year increase in revenue and a substantial 99.2% year-on-year decline in net foreign exchange losses, which printed at N5.53 billion from N656.37 billion in 12 months. #MTN Nigeria Soars to New High on Earnings Recovery#
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