JPM ups Millicom to 'overweight' on growth resiliency
31/03/2022 09:52
** J.P. Morgan upgrades rating on Millicom TIGOsdb.ST to
"overweight" from "neutral," saying that in times of high
inflation the Luxembourg-based telecom services provider "offers
more growth resiliency" than its peers
** The broker says the average inflation rates in Central
America, Bolivia, Colombia and Paraguay - where Millicom has
most of its operations - are lower than rates in countries where
its Latin America competitors operate
** It also says the industry structure might help the
company's average revenue per user (ARPU) grow with inflation as
Millicom's brand Tigo leads in sectors like mobile operations,
broadband and Pay-TV in markets with benign competition
** JPM expects Tigo to grow service revenues +0.4% year on
year in organic real terms during 2022, more than its
competitors
** The broker suggests that the company is trading at
discounted valuations and raises PT to SEK 370 ($39.87), which
represents a 55% upside
** The shares of Millicom are up 2% at 0830 GMT, pairing
earlier gains of as much as 5%
($1 = 9.2795 Swedish crowns)
(Reporting by Agata Rybska)
((agata.rybska@thomsonreuters.com))