TIGO Stock Forecast & Price Target

Millicom International Cellular's strategic expansion through the acquisition of Telefonica's operations in Ecuador and Uruguay, along with previous acquisitions such as Coltel and UNE-EPM, positions the company to enhance its market presence in Latin America. The firm’s wireless and fixed-line networks significantly serve a large customer base—42 million wireless customers and 4 million broadband customers—indicating a solid revenue foundation. Despite anticipated increases in net debt, projected benefits from consolidation and the delivery of a robust turnaround strategy could drive future growth in less developed markets where Millicom operates.

Millicom Intl Cellular's relatively low capex-to-sales ratio of 12.2% in 2024 indicates potential limitations in investment in infrastructure, which may hinder its ability to compete effectively in the rapidly evolving telecom landscape. The entry of competitors like Nubicom SRL, which plans to deploy a new 5G network using the same frequency as established operators, poses significant threats to average revenue per user (ARPU) and profit margins, further straining the firm's profitability. Additionally, the overall financial health of Millicom may be adversely affected by the combination of increasing competitive pressure and insufficient capital expenditure, leading to a negative outlook for the company.