[wireless week] Shares of Millicom International Cellular SA rose Thursday after an analyst upgraded the stock on growth prospects for its cell phone business, especially in Africa and South America.
Shares of the international cell phone operator, based in Luxembourg, were up $1.97, or 2.2 percent to $91.12 in midday trading and earlier reached $92.78, a 52-week high.
JPMorgan analyst Jean-Charles Lemardeley upgraded the stock to "Overweight" from "Neutral" and raised his target price to $110 from $91.
"Millicom is poised to significantly outperform consensus estimates again in 2010 and 2011," he said in a research note.
He expects Millicom's business to show modest growth in Central America, which accounts for about half of segment profit. Millicom holds a 53 percent market share in the region.
Growth in Africa and South America should be more robust going forward.
In Africa, Millicom increased its market share to 30.8 percent in the fourth quarter from 28 percent in the same quarter a year earlier. In South America, Millicom holds a 16.3 percent share, up from 15.5 percent.
Lemardeley credits a strong management team at Millicom for the market share gains.
Millicom operates in 16 countries in Central and South America, Africa and Asia.
Millicom shares up on cell phone growth prospects
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