TIGO Stock Forecast & Price Target

Millicom International Cellular is poised for growth through strategic acquisitions, including the operations of Telefonica in Ecuador and Uruguay, which will expand its market presence in the region. The firm’s wireless networks currently cover approximately 120 million people, serving 42 million customers, while its fixed-line services reach 14 million homes and cater to around 4 million broadband customers, indicating a substantial customer base. Despite projected increases in net debt due to these acquisitions, Millicom's emphasis on converged service offerings and the potential for operational improvements in newly acquired territories positions it favorably for future financial performance.

The analysis indicates that Millicom International Cellular has a notably low capex-to-sales ratio of 12.2% for 2024, which could raise concerns about the firm's investment in infrastructure relative to its revenues. Additionally, the entrance of Nubicom SRL into the Argentine market with a new 5G network may create downward pressure on average revenue per user (ARPU) and profit margins, intensifying competition in an already challenging market. These factors contribute to a negative outlook on the company's future financial performance as it navigates increased competition and potential revenue challenges.