Airtel Africa Plc: Analysts Update Price Targets and EPS Estimates Following Strong Q3 Results

Airtel Africa Plc (LON:AAF) has released its third-quarter results, revealing a strong operating performance and growth prospects that have led analysts to update their price targets and EPS estimates. The company's share price surged almost 10% on the day of the results, reflecting investors' and analysts' optimism about its future.

The Q3 2025 report highlighted an exceptional gain of $94m in pre-tax profit due to currency appreciations in Tanzania and Nigeria. Net profit came in at $133m, with a 21% increase in constant currency revenue. The Mobile Money division, a significant driver of growth, brought in 29.6% more revenue in constant currency. Despite the strong results, profit margin slipped 0.5% and basic earnings per share (EPS) fell to 6.2c from 7.1c. Earnings before interest, tax, depreciation, and amortisation (EBITDA) declined 11.9% in reported currency, attributed to higher fuel costs and lower revenue from Nigeria.

Following the results, analysts have revised their price targets and EPS estimates for Airtel Africa. The average price target has shifted to a 10.66% gain in the next 12 months, up from the previous average decline of 4.47%. EPS estimates have been revised upward, with analysts now expecting EPS to reach 22p in 2027, a nearly fourfold increase from the previous estimate.

The growing customer base and strong revenue growth in the Mobile Money division are key contributors to Airtel Africa's long-term growth prospects. The company's total customer base grew by 7.9% to 163.1 million, with data customers increasing by 13.8% to 71.4 million and mobile money subscribers expanding by 18.3% to 44.3 million. The Mobile Money division's revenue grew by 29.6% in constant currency, with Q3'24 annualised transaction value reaching $146 billion in reported currency.

However, Airtel Africa faces several challenges in maintaining its momentum. Currency volatility, inflation, regulatory risks, and competition are potential obstacles that the company must navigate to continue its growth trajectory. Despite these challenges, the company's strong performance and growth prospects have led analysts to update their price targets and EPS estimates, reflecting their optimism about its future.



In conclusion, Airtel Africa's strong Q3 2025 results have led analysts to update their price targets and EPS estimates, reflecting the company's growth prospects and the optimism of investors and analysts. The growing customer base and strong Mobile Money division performance contribute significantly to the company's long-term growth prospects, despite the challenges it may face in maintaining its momentum.