TIGO shares hit 52-week high of $27.77 By Investing.com

In a remarkable demonstration of market confidence, Millicom International Cellular SA (TIGO) stock has hit a 52-week high, climbing to $27.77. This peak reflects a significant turnaround for the telecommunications and media company, which has seen an impressive 73.76% gain over the past year. Investors have responded positively to the company’s strategic initiatives and growth in its core markets, driving the stock to new heights. The 52-week high milestone underscores the optimistic sentiment regarding TIGO’s performance and potential in the competitive telecommunications sector.

In other recent news, Millicom International Cellular SA is at the center of several significant developments. First, the company’s financial performance showed robust growth in the second quarter, with organic EBITDA increasing 20% ​​and equity free cash flow growing to $268 million. Service revenue increased 5.5% year-on-year to $1.36 billion, and EBITDA grew to $634 million, representing 23.1% year-on-year growth.

In other developments, Millicom announced the appointment of Maxime Lombardini as interim non-executive chairman of the board, following the departure of Mauricio Ramos. Lombardini’s appointment is expected to continue the company’s growth and efficiency trajectory.

In addition, Millicom is navigating a substantial $2.4 billion merger and acquisition deal in Colombia that is expected to consume approximately 18 months of the Company’s equity free cash flow, creating some uncertainty about Millicom’s ability to maintain its previous cash distribution policy.

Furthermore, Scotiabank recently upgraded Millicom to Sector Outperform from Sector Perform and raised the price target to $37.30 from $30.00. This upgrade comes amid a significant reduction in Millicom’s financing costs and the potential disposal of cell towers that could inject significant cash into the company.

Most recently, Atlas increased its stake in Millicom from 29.2% to 40.4%, although this did not result in Atlas gaining a majority of voting rights. These are recent developments that illustrate Millicom’s ongoing efforts to strengthen its operations and generate cash.

InvestingPro Insights

In the context of Millicom International Cellular SA’s (TIGO) 52-week high, a look at key metrics from InvestingPro offers further insight into the company’s financial health and market position. With a market capitalization of $4.74 billion and robust revenue growth of 5.68% over the trailing twelve months to Q2 2024, TIGO is demonstrating solid financial expansion. The company’s gross margin stands at an impressive 74.5%, indicating strong operating efficiency.

InvestingPro tips suggests that TIGO’s net income is expected to grow this year, which is consistent with the positive trend in its share price performance. In addition, the valuation implies a strong free cash flow yield, suggesting that the company is generating healthy cash flows relative to its share price. It’s worth noting that TIGO trades at a high earnings multiple, which could reflect market optimism about its future growth prospects.

For investors seeking detailed analysis, additional InvestingPro tips are available that provide comprehensive insight into TIGO market dynamics and potential investment opportunities.

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