IHS Holding stock downgraded by JPMorgan on modest growth outlook

Investing.com - JPMorgan downgraded IHS Holding (NYSE:IHS) from Overweight to Underweight on Friday, while lowering its price target to $6.00 from $8.00. This target sits below the current stock price of $6.43 and significantly under the analyst high target of $17.00, according to InvestingPro data.

The downgrade comes despite IHS stock having risen 120% year-to-date, as the company addressed key issues that negatively impacted its performance in 2024 and navigated through disruptions. InvestingPro data confirms this impressive performance, showing a 147.31% total return over the past year, making it one of the market’s top performers despite trading below its Fair Value.

JPMorgan cited several concerns in its analysis, including modest growth outlook for IHS’s Nigeria and Africa businesses, relatively small contribution from Latin America, and uncertain long-term outlook for carrier capital expenditure in Nigeria.

The financial services firm also highlighted potential Naira weakness and large shareholders that present an overhang on the stock as additional risk factors.

IHS only grew 2.9% in the third quarter excluding CPI escalators and foreign exchange resets, with almost 60% of revenue coming from Nigeria and 30% from Sub-Saharan Africa, while Latin America contributed just 11.3% of revenue despite showing stronger growth at 8.8%. The company trades at an attractive P/E ratio of just 5.03 and offers a strong free cash flow yield, according to InvestingPro analysis, which identifies 6 additional ProTips for this stock.

In other recent news, IHS Holding Ltd reported impressive financial results for the third quarter of 2025, significantly exceeding earnings expectations. The company achieved an earnings per share (EPS) of $0.44, which was notably higher than the anticipated $0.11, resulting in a 300% earnings surprise. Revenue also surpassed forecasts, coming in at $455.1 million compared to the expected $424.52 million. These robust financial figures demonstrate a strong performance for the quarter. The earnings report highlights a period of growth and financial strength for IHS Holding Ltd. Investors and analysts are likely to take note of these developments as they assess the company’s future prospects.

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