Telecommunications giant, MTN Nigeria Plc, is among the top stocks that topped the losers chart in 2024, according to details obtained from the Nigerian Exchange (NGX) equities trading segment.
However, stock market analysts observed that the telecoms compan’s reduced its negative stock market performance with the last-minute rally in the equities market in 2024.
The stock had plunged to N170 range following strong sell pressures that damaged its market valuation. In 2025 stock recommendation lists, MTN Nigeria has appeared among the top picks.
The Nigeria’s telecommunications company is rated buy despite the fact that analysts estimated that its negative earnings per share would widen by more than 5 percent from 24.48% to N25.78. According to details from Cowry Asset Limited stock recommendation, the telecom company has 31.50 percent potential upside set between its current and target price.
MTN Nigeria’s target price was set at N263, versus its market price of N200. Its share price rebounded from N170 range as a recent debt market visit where the telecom company raised funds to finance its working capital boosted investors sentiments.
Its debt finance and equities fund had plunged due to successive huge FX losses that damaged the telecom company’s balance sheet last year. The company has also stepped up the process for its interconnectivity debt collection following an approval from the regulator.
Analysts said this is expected to help its earnings in the coming days. Cowry Asset target price of N263 is still far below MTN Nigeria’s 52-week high rate of N319.80.
This suggests that the stock rebound may be actually slow as investors take caution and watch how the telecom tower renegotiation and localisation of debt deals would pan out in its quarterly earnings. Last week, Afrinvest Limited recommended MTN Nigeria shares to investors for buy with 31.4 percent upside potential on revised target price.
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