Trump announces trade deal with EU following months of negotiations
In a remarkable display of market confidence, Millicom International Cellular SA (NASDAQ:TIGO) stock has achieved a 52-week high, with shares trading at an impressive $30.32. According to InvestingPro data, the company maintains a "GREAT" overall financial health score of 3.26, with particularly strong momentum indicators. This peak represents a significant milestone for the telecommunications and media company, reflecting a robust 1-year total return of 64.08%. With an impressive gross profit margin of 75.5% and a market capitalization of $5.1 billion, investors have shown increased enthusiasm for TIGO’s stock, signaling strong performance and potential for continued growth within the competitive industry landscape. The company’s strategic initiatives and expansion efforts appear to be resonating positively with the market, as evidenced by these latest financial indicators. InvestingPro analysis suggests the stock is currently undervalued, with 8 additional key insights available to subscribers through their comprehensive Pro Research Report.
In other recent news, Telefonica (NYSE:TEF) has announced the sale of its Colombian business to Millicom Spain for $400 million, marking a strategic move to reduce its presence in the Latin American market. The deal involves Millicom Spain acquiring 67.5% of Colombia Telecomunicaciones, though it still awaits regulatory approvals. This sale is part of Telefonica’s broader strategy to minimize its operations in Latin America due to various challenges faced in the region. Meanwhile, Millicom International Cellular has caught the attention of Morgan Stanley (NYSE:MS), which initiated coverage with an Equalweight rating and a price target of $32.00. The firm noted Millicom’s strong revenue performance in Colombia, reporting $1.4 billion in 2024 with a high EBITDA margin of around 40%. Additionally, Millicom’s Board of Directors has announced a new shareholder remuneration policy that includes the resumption of regular cash dividends, aiming to sustain or grow them annually. The company plans to propose a dividend of $3.00 per share at its upcoming Annual General Meeting, reflecting confidence in its financial stability. These developments have been positively received by investors, highlighting Millicom’s strategic focus on shareholder value amidst economic uncertainties in Latin America.
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