March 10, (THEWILL) — Analysts at CardinalStone Securities Limited have reaffirmed a “Buy” rating on shares of MTN Nigeria Communications Plc, citing an improving earnings outlook and sustained demand for telecom services.
According to the investment firm, MTN Nigeria’s 12-month target price has been revised upward to about ₦336.60 per share, up from the previous estimate of ₦301.49. This represents a potential upside of roughly 37% from the stock’s reference price of around ₦245 on the Nigerian Exchange Limited.
CardinalStone’s positive outlook is anchored on expectations of strong revenue growth, with analysts projecting about 43.8% year-on-year revenue expansion. The growth is expected to be supported by telecom tariff adjustments, as well as continued expansion in data and voice usage across Nigeria.
The analysts also noted that MTN Nigeria returned to profitability in the fourth quarter of 2024, posting ₦114.5 billion in net profit, compared with a ₦514.9 billion loss recorded during the first nine months of the year.
Operational restructuring also played a key role in improving the company’s financial performance. MTN Nigeria recorded ₦113.8 billion in savings from renegotiated tower lease contracts, alongside ₦41.9 billion in additional savings generated through improved operational efficiency.
CardinalStone added that the telecom operator is expected to continue benefiting from growing subscriber numbers and rising consumption of voice and data services, which should further support revenue expansion.
Looking ahead, the analysts expect earnings margins to remain strong, projecting an EBITDA margin of about 42.7% for the 2025 financial year, driven by rising data demand and the impact of recent tariff increases in Nigeria’s telecom sector.
Overall, the firm believes the telecom giant is on a recovery path, with improving profitability and favourable sector dynamics likely to support the stock’s performance over the next 12 months.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
