Scotiabank Raises Millicom Price Target to $46.10, Expects Impressive Turnaround Strategy

Scotiabank has raised its price target on Millicom to $46.10 from $37 and maintains a Sector Perform rating. The company needs to deliver an "impressive turnaround strategy" to offset the heavy interest burden from its recent acquisitions.

Scotiabank has maintained its "Sector Perform" rating for Millicom International Cellular (TIGO) while increasing its price target from USD 37.00 to USD 46.10, representing a 24.59% increase [1]. The analyst behind this update, Andres Coello, acknowledges the need for an "impressive turnaround strategy" to offset the heavy interest burden from the company's recent acquisitions.

Millicom offers wireless and fixed-line telecom services in Latin America, serving approximately 120 million people and 42 million customers. The company's recent acquisitions, including Telefonica's operations in Ecuador and Uruguay, have significantly increased its debt load. Scotiabank's updated rating and price target reflect the market's optimism regarding Millicom's ability to execute a successful turnaround strategy.

Analysts have shown a generally optimistic outlook on Millicom's stock, with several "buy" and "strong-buy" ratings. However, the company's Q2 earnings fell short of analysts' expectations, with an EPS of $0.51 versus a consensus estimate of $0.54, alongside a revenue of $1.37 billion against expectations of $1.40 billion [2].

Millicom's current price of $44.92 implies an average target price of $41.07, with a high estimate of $48.00 and a low estimate of $36.00 [1]. The consensus brokerage recommendation is "Outperform," with an average rating of 2.0 out of 5 [1]. Despite the optimistic outlook, Millicom faces significant challenges in managing its debt and improving its financial performance.

To maintain its new price target, Millicom will need to demonstrate strong operational efficiency and cost-cutting measures to manage its debt burden. The company's ability to execute a successful turnaround strategy will be critical in meeting analyst expectations and sustaining its stock price.

References:
[1] https://www.gurufocus.com/news/3069162/tigo-stock-rating-update-scotiabank-increases-price-target-tigo-stock-news
[2] https://www.marketbeat.com/instant-alerts/millicom-international-cellular-nasdaqtigo-stock-price-expected-to-rise-jpmorgan-chase-co-analyst-says-2025-08-14/