Millicom Price Target Raised to $37.90 at Scotiabank

Millicom International Cellular (TIGO) has seen a boost in its stock price trajectory, with Scotiabank raising its price target to $37.90 from $37.30. This increase reflects the positive outlook for the company and the wireless telecommunications industry as a whole. The raised price target is likely influenced by several key factors, including improved earnings outlook, strategic initiatives, market conditions, and positive peer performance.



Millicom's recent financial performance and earnings revisions have contributed to the analyst's increased price target. The company reported quarterly earnings of $0.20 per share, missing the Zacks Consensus Estimate of $0.78 per share. However, this compares to a loss of $0.36 per share a year ago, indicating an improvement in earnings. Additionally, the company has not been able to surpass consensus EPS estimates over the last four quarters, which may have contributed to the analyst's increased price target. The company's revenue of $1.43 billion for the quarter ended December 2024 missed the Zacks Consensus Estimate by 1.40%, but this compares to year-ago revenues of $1.48 billion, indicating a slight increase in revenue. The company has not been able to beat consensus revenue estimates over the last four quarters, which may have contributed to the analyst's increased price target. The company's earnings outlook is positive, with the current consensus EPS estimate of $0.82 on $1.46 billion in revenues for the coming quarter and $2.84 on $5.83 billion in revenues for the current fiscal year. The company's earnings revisions trend is favorable, which has contributed to the analyst's increased price target. The company's stock has added about 11.4% since the beginning of the year, outperforming the S&P 500's gain of 1.3%. The company's earnings revisions trend, along with its recent financial performance, have contributed to the analyst's increased price target.

Industry trends and competition play a significant role in shaping Millicom's stock price trajectory, as reflected in the raised price target. The wireless telecommunications industry has been experiencing growth and consolidation, with companies investing in 5G networks and other advanced technologies. This trend has positively impacted Millicom's stock price, as seen in the raised price target. For instance, UBS upgraded millicom to "Buy" from "Neutral" and raised its price target to $33 from $25, citing the company's potential in the growing wireless market. Millicom's competitors, such as AT&T, T-Mobile, and Vodafone, have also seen their stock prices rise due to positive earnings reports and strategic initiatives. This competitive landscape has likely influenced Millicom's stock price trajectory.

In conclusion, Millicom's recent financial performance, earnings revisions, and the positive outlook for the wireless telecommunications industry have contributed to the raised price target by Scotiabank. The company's strategic initiatives, market conditions, and positive peer performance have also played a role in shaping its stock price trajectory. Investors should closely monitor Millicom's progress and consider the raised price target when making investment decisions.