On Tuesday, JPMorgan (NYSE:JPM) initiated coverage on Millicom International Cellular SA (NASDAQ:TIGO), a telecommunications and media company, assigning an Overweight rating to the company's stock. The firm has set a price target of $30.00 for Millicom's shares.
The coverage initiation on Millicom's local shares comes as JPMorgan ceased its coverage on the company's Swedish Depository Receipts (SDRs). The Overweight rating for the local shares aligns with the previous rating held for the SDRs. The termination of the SDRs coverage and the initiation of the local shares coverage were both announced on the same day.
JPMorgan's analysis and estimates for Millicom are consistent with the views presented in a report from May 24, 2024. The firm's price target of $30.00 per share for the end of December 2024 corresponds to a value of 320 Swedish krona for the SDRs, indicating a direct comparison between the two types of equity.
Millicom International Cellular SA is known for providing a range of digital services including mobile and fixed telecommunications, cable television, and broadband, primarily in Latin America and Africa. The Overweight rating suggests that JPMorgan views the company's stock as a better value than the average stock in the analyst's coverage universe.
InvestingPro Insights
As Millicom International Cellular SA (NASDAQ:TIGO) garners attention with JPMorgan's Overweight rating and a price target of $30.00, insights from InvestingPro provide additional perspectives on the company's financial health and market performance. Millicom's market capitalization stands at approximately $4.12 billion, reflecting its significant presence in the telecommunications sector. Despite the company's high P/E ratio, which is currently at 587.32, analysts predict profitability in the coming year, an optimistic sign for potential investors. Moreover, Millicom has experienced substantial revenue growth in the last quarter, with a 8.62% increase, underscoring the company's expanding operations.
InvestingPro Tips suggest that while Millicom's stock is trading near its 52-week high and may be in overbought territory according to the RSI, the company has delivered strong returns over the last month and three months, with a 19.55% and 33.09% increase respectively. Additionally, with a price that is at 99.67% of its 52-week high, Millicom has demonstrated a robust performance in the market. However, investors should note that the company does not pay a dividend, which could be a consideration for those seeking regular income from their investments.
For those interested in a deeper dive into Millicom's financials and market prospects, InvestingPro offers a comprehensive analysis, including additional InvestingPro Tips that can guide investment decisions. By using the coupon code PRONEWS24, readers can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to valuable insights for informed investing. With 11 additional tips available on InvestingPro, investors can explore a range of factors that may impact Millicom's future performance.
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