VEON (VEON) Stock Forecast & Price Target

VEON Ltd has demonstrated robust growth in its digital services segment, with the number of underlying digital customers increasing by 47% year-on-year, now totaling 111 million, and digital revenues rising to nearly BDT 251 million, marking a substantial improvement from previous years. The company's significance in the digital space is underscored by Pakistan's advanced digital journey, where direct digital revenues have surged to 22% of total service revenues, nearly doubling year-on-year. Furthermore, the increase in 4G penetration among active subscribers to 76% is indicative of a strong push toward higher-value digital offerings, positioning VEON favorably for future growth.

VEON Ltd's EBITDA margin has decreased by 60 basis points to 44.7%, signaling potential challenges in operational efficiency. The significant decline in Banglalink's capital expenditures by 41% year-over-year suggests a contraction in investment that could affect future growth prospects, with projected CapEx to sales ratios indicating further downward trends. Additionally, adverse currency movements and ongoing pressure on disposable incomes have contributed to declining revenue growth in key markets like Pakistan and Bangladesh, which may result in continued earnings volatility in the coming quarters.