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Telecom giant’s stock retreats from 52-week high of N915 as earnings euphoria fades, but analysts see upside to N1,011.63 target price.
MTN Nigeria Plc lost approximately 7% of its market value on Wednesday as investors trimmed their holdings in the telecommunication company’s shares.
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Data from the Nigerian Exchange (NGX) revealed that MTN Nigeria’s share price closed at N763, with 15.708 million units valued at N12.226 billion transacted during the session.
The price retreated by 6.95% as sell-side actors dominated its substantial trading volume. MTN Nigeria had peaked at N915 per share—its highest value in 52 weeks—before the decline.
However, the telecom company’s share price has continued to fall as financial year 2025 and Q1 2026 earnings euphoria begin to fade.
Market Value Drops to N16 Trillion
At the close of the trading session on Wednesday, the market value of MTN Nigeria Plc’s 20.995 billion outstanding shares declined to N16.019 trillion, according to data from the Nigerian Exchange.
The company is currently trading at a 16.61% discount to its highest valuation in the Nigerian stock market over the last 52 weeks.
CardinalStone Maintains Buy Rating, Sets N1,011.63 Target
CardinalStone Securities Limited has revised its projections for MTN Nigeria Communications Plc following strong earnings performance in the first quarter of 2026. Equity analysts at CardinalStone have set a target price of N1,011.63 for MTN Nigeria, keeping the investment firm’s BUY recommendation unchanged.
Analysts Cite Energy Costs, Deleveraging, and Robust Cash Flow
“Our adjustments principally revolved around the potential impacts of higher energy costs and the reductions in net debt position,” the investment firm said.
“While EBITDA margin is expected to be slightly lower vis-à-vis our previous estimate, the second-order effect of the latter should keep the net income margin mostly flat.”
The firm also highlighted that MTN Nigeria’s deleveraging efforts are supported by its robust cash flow from operations, which rose by 73.3% year-on-year to N764.1 billion in Q1 2026.
This amount is equivalent to 27.7% of the sum of N377.7 billion in gross debt and N2.4 trillion in lease liabilities as of Q1 2026.
Optimism Remains Despite Recent Decline
“All in, we remain optimistic on the company’s valuation. Our optimism reflects robust demand outlook, sustained network investments, and an overall reduction in business risk, driven by moderations in net debt and FX exposures,” the investment firm concluded.
