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Wednesday, TD Cowen raised the price target on IHS Holding (NYSE:IHS) to $17.00 from $16.00, while retaining a Buy rating on the stock. The adjustment follows the company’s first-quarter earnings for 2025, which surpassed Wall Street’s expectations. IHS Holding also reaffirmed its financial guidance for the year. According to InvestingPro data, the stock is currently trading at $5.37, suggesting significant upside potential to analyst targets ranging from $4.25 to $16.00.
The company’s management has indicated a more stable economic environment in Nigeria, which is contributing to a resurgence in investor confidence. IHS Holding recently accomplished its asset disposition objective by divesting IHS Rwanda at an enterprise value (EV) of $274.5 million. This transaction was completed at an EBITDA multiple of 8.3x, aligning with the company’s strategic plans. The market has responded positively to these developments, with the stock delivering impressive returns of 93.73% over the past six months and 71.08% over the last year.
TD Cowen’s analyst highlighted the positive long-term outlook for IHS Holding, backed by the Nigerian market’s stabilization and the company’s strategic moves. The raised price target reflects confidence in IHS’s ability to navigate its business environment and execute its strategy effectively. With an EBITDA of $943.46 million and a market capitalization of $1.85 billion, the company maintains a solid financial position. Discover more detailed insights and 8 additional key tips about IHS Holding with InvestingPro.
IHS Holding’s performance in the first quarter of 2025 and its steady progress in strategic asset management appear to support the analyst’s optimistic assessment. The company’s adherence to its 2025 guidance further underscores its potential for sustained growth.
The increase in the price target for IHS Holding stock by TD Cowen signals a vote of confidence in the company’s future prospects, driven by improved macroeconomic conditions in Nigeria and strategic initiatives that are beginning to bear fruit.
In other recent news, IHS Holding Limited reported first quarter results that exceeded expectations, with adjusted earnings per share reaching $0.10, surpassing the consensus estimate of $0.08. The company’s revenue rose by 5.2% year-over-year to $439.6 million, beating the anticipated $390.49 million. However, the full-year 2025 revenue guidance of $1.68-1.71 billion fell short of analyst projections, which were at $1.7 billion. Despite the strong start to 2025, marked by solid growth in revenue, Adjusted EBITDA, and ALFCF, the market reacted negatively to the guidance. Adjusted EBITDA saw a significant increase of 36.4% to $252.6 million, with a margin improvement to 57.5%. IHS Holding also announced the sale of its Rwanda operations for $274.5 million, aligning with strategic initiatives to enhance shareholder value. The company experienced organic revenue growth of 25.6% in Q1, although this was partly offset by the depreciation of the Nigerian Naira against the U.S. dollar. These developments indicate a mixed response from investors, particularly due to the revenue guidance.
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