Telecom giant Airtel Africa Plc has delivered a remarkable 177.53% year-to-date (YTD) rally on the Nigerian Exchange (NGX), climbing from its opening price of N2,270 to hit N6,300 per share. With a market capitalization standing at a record N23.68 trillion across its 3.758 billion outstanding shares, Airtel Africa holds the title of the most valuable company on the local bourse, outpacing major heavyweights including Dangote Cement, MTN Nigeria, and BUA Foods.
Investor enthusiasm has been further fueled by the group's planned initial public offering (IPO) of its fintech arm, Airtel Money, on the London Stock Exchange in the second half of 2026, aimed at unlocking standalone value and attracting international institutional capital.
Analyst Targets and Investment Recommendations
Equities research firms hold contrasting views on the stock's future upside following its steep valuation re-rating:
- Cowry Asset Management: Recommends a BUY rating with a target price of N8,820 per share, implying a 40% upside from current levels. Cowry projects an Earnings Per Share (EPS) of N101.20, advising short-term investors to consider profit-taking around N7,245 and maintain a stop-loss at N5,355.
- CardinalStone Securities: Downgraded the stock to HOLD with a revised 12-month target price of N6,422.10 (up from N5,818.43). Analysts note that while the London IPO will help narrow the typical 10% to 30% conglomerate discount, recent price gains leave limited immediate upside.
Q1 2026/2027 Financial Performance Highlights
For the first quarter ended June 30, 2026, Airtel Africa posted strong operational results. Group revenue expanded by 31.0% in reported currency (21.1% in constant currency) to $1,853 million, driven by robust performance across Nigeria (+29.8%) and East Africa (+17.8%).
Mobile money revenue surged 38.9% to $404 million, supported by a 23.3% growth in its active customer base to 56.5 million users. Group profit before tax rose 32% year-on-year to $360 million, while profit after tax surged 27% to $198 million, despite higher finance costs and foreign exchange volatility.
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