Share Prices & Company Research

Market News

07 Apr 2021 | 13:09

Numis stays at 'buy' on Helios Towers ahead of purchase of Airtel Africa assets

(Sharecast News) - Numis reiterated its 'buy' recommendation for shares of Helios Towers, pointing out to clients a slew of appealing characteristics of the telecom tower infrastructure company. It also hiked its discounted cash flow- based target price for Helios Towers from 250.0p to 275.0p.

The immediate trigger for the upwards price target revision was the firm's impending takeover of Airtel Africa's tower portfolios in four countries on that continent.

That transaction would boost Helios's value in multiple ways, aside from the increased diversification afforded.

Not least was the company's proven track record in extracting value from its acquisitions.

In Tanzania and the Democratic Republic of Congo, and over the five years to 2020, Helios had boosted its EBITDA margins by 3,300 and 1,300 basis points, respectively.

The purchase of assets from Airtel Africa would also increase the firm's contracted revenues and position it for the expected further organic growth in the sector across Africa.

The broker also highlighted Helios's annuity-like free cash flow streams, long-term growth prospects and "good" visibility when it comes to earnings.

Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 14th May 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.