TIGO Stock Forecast & Price Target

Millicom Intl Cellular has demonstrated solid recurring EBITDA growth in key markets, achieving a notable 10.8% increase in both Panama and Paraguay, which may contribute to enhanced market share. The company's improved margins in Colombia, rising to 38.4% from 30.9%, along with the return to EBITDA growth in Guatemala, indicate positive operational trends and profitability enhancement. Additionally, significant cost savings from initiatives like Project Everest, now anticipated at US$250 million annually, alongside potential capex savings from the SpaceMobile agreement, further strengthen the financial outlook for Millicom.

Millicom International Cellular's financial outlook is negatively impacted by a significant reduction in capital expenditures, particularly in Entel Bolivia, which decreased from $357 million in 2018 to $141 million in 2022, indicating potential long-term operational constraints. The depreciation of the Colombian Peso and expectations of further currency devaluation have adversely affected the firm's near-term EBITDA estimates by about $84 million, raising concerns about revenue stability in affected regions. Additionally, a disappointing year-over-year EBITDA decline of 0.9% in El Salvador, despite favorable macro conditions, highlights challenges in revenue growth opportunities amidst strong prior-period performance.