Tigress Financial maintains Buy rating on IHS Holding with PT raised to $11.

Tigress Financial maintains Buy rating on IHS Holding with PT raised to $11.

Tigress Financial has maintained its Buy rating on IHS Holding Limited, raising its price target to $11. The update comes following the company's strong second-quarter (Q2) financial performance, which saw revenue of $433.3 million, a 0.5 percent decrease year-on-year (YoY), but an 11.1 percent organic growth driven by foreign exchange resets and power indexation [1].

IHS Holding's adjusted EBITDA of $248.5 million decreased by 0.9 percent YoY, while the adjusted EBITDA margin remained stable at 57.3 percent. The company also reported an adjusted levered free cash flow (ALFCF) of $54 million, a 19.2 percent decline, driven by interest payment re-phasing following a November 2024 bond refinancing. Capital expenditure (Total Capex) was down by 13.8 percent YoY, reflecting actions to improve cash flow generation [1].

Tigress Financial's analysts highlighted the company's strong performance, particularly the 18.92 percent projected quarterly revenue growth by December 31, 2025, and a 91.45 percent estimated quarterly earnings growth by March 31, 2026. The average one-year price target for IHS Holding is $9.08, with forecasts ranging from $5.56 to $17.85 [2].

The analysts noted that IHS Holding's strategic focus on reducing debt and maximizing free cash flow generation, as well as its strong operational performance, support their positive outlook. The company's de-leveraging efforts and expected disposal of its Rwanda operations are expected to further strengthen its balance sheet [1].

References:
[1] https://businessday.ng/companies/article/ihs-holding-q2-scorecard-shows-revenue-up-2-1-to-433-3m/
[2] https://fintel.io/sfo/us/ihs