As investors boosted their wagers on MTN Nigeria Plc ahead of the second quarter of the fiscal year 2025 earnings release, the telecom company’s market value hit an all-time high in the Nigerian Exchange’s (NGX) equities segment.
Starting at N357.50 and ending at N395, the telecom company’s stock price increased by about 10.5% during the course of the week, reaching its highest level in a year.
According to transaction information gathered from the Nigerian Exchange, MTN Nigeria Plc surged to N395 per share on Friday after 2.222 million units worth N885.593 million were exchanged on the local exchange. As investors expect a sustained earnings recovery, the substantial trading volume and value increased the market value of MTN Nigeria Plc’s 20.995 billion outstanding shares to N8.293 trillion. Numerous analysts have forecast a favourable future for telecom operators in the wake of the regulator’s tariff changes earlier this year.
Cowry Asset Limited’s stock analysts have revised their estimate and set MTN Nigeria’s 12-month price target at N568.80, which represents a 44% upside potential, in their stock recommendation note. Increased data usage and the quick deployment of 5G networks, according to analysts, will help the sector meet its earnings forecasts and recover from the decline brought on by the naira’s devaluation.
Given MTN Nigeria’s substantial market share, analysts predicted that the telco would profit from rising average data usage, which is predicted to increase by an additional 10–15% in H2 2025 as users become more active on social media, video, gaming, and e-learning platforms.
According to Zedcrest in its mid-year outlook: “We expect Nigerian mobile subscriptions to continue growing into H2 2025, albeit from a high base. Recent data shows active mobile lines around 172.9 million by Apr 2025, and we expect roughly 8–9% annual growth through the next three years.”
Continuing, tower lease agreements were renegotiated, and MTN Nigeria was able to lower its exposure to foreign exchange liabilities. In the absence of significant foreign exchange losses that had harmed its balance sheet due to cumulative losses, this is anticipated to increase its profit margin, BrandSpur telecom and IT news desk reports.
If the Nigerian subsidiary regains a positive equity position and dividend payments, MTN Group intends to reduce its ownership through a public offering. As the weak dollar fuels demand, analysts predict a 44% upside in oil prices as #MTN Nigeria reaches its all-time high.
