MTN’s share rally could continue, say analysts
Market is pleased to see that MTN’s debt at the holding company level has fallen dramatically
MTN’s shares are at their best level since Nigeria’s central bank dropped a bombshell on the mobile operator in August 2018 – and analysts say the stock could climb further. The share has risen 23,7%, to R94.09, since its close on March 6, the day before MTN published its results and eased investor concerns with a set of bullish targets and numbers which showed debt was under control.
In late August 2018, Nigeria’s central bank demanded that MTN return $8.1bn worth of dividends. That, together with a separate claim from Nigeria’s attorney-general, which said the operator owed $2bn in taxes, sent the share crashing from R107.34 to below R70. MTN’s announcement in December that the $8.1bn demand had been slashed to $53m did little to reignite the share price, but positive sentiment returned last week despite mediocre earnings. Mergence Investment Managers portfolio manager Peter Takaendesa said SA fund managers had sold down their exposure to MTN, which was also heavily sold by ...
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