VEON (VEON) Stock Forecast & Price Target

VEON Ltd has demonstrated significant growth potential with smartphone penetration increasing from 24% in 2020 to over 70%, indicating a strong demand for its connectivity services, which enhances the company's ability to manage network costs effectively. The company's exemplary earnings results for the first quarter of 2025 support an optimistic outlook, forecasting a 12%-14% growth in underlying local currency revenues and a slightly higher 13%-15% increase in local currency EBITDA. Furthermore, VEON's strategic position to monetize in-house digital applications across vital sectors such as financial services, healthcare, education, and entertainment positions it well for sustained growth moving forward.

The recent 18% sell-off in VEON's stock appears to be primarily driven by heightened risk aversion to frontier markets, particularly in light of ongoing geopolitical tensions. Limited liquidity exacerbated the decline, and external factors, such as developments related to Ukraine and U.S. foreign policy unpredictability, have further negatively impacted investor sentiment. Although there were no specific operational issues reported by VEON itself, the market's reaction demonstrates a vulnerability to broader market trends and geopolitical concerns affecting frontier market investments.