New Street Research - MILLICOM (TIGO) TIGO (Neutral, TP: $20, +16%) Millicom Q4s: FCF lift again - does Xavier Niel have the Midas touch?

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New Street Research

Soomit Datta

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TIGO (Neutral, TP: $20, +16%) Millicom Q4s: FCF lift again - does Xavier Niel have the Midas touch?

Millicom’s Q4s came in nicely ahead at EBITDA and with the positive surprise of another lift in the EFCF outlook through to the end of 2024. After a negative EFCF print for 2023, this implies a mammoth $550m for FY 24, and well ahead of consensus, driven by some “one off” factors in 2023 falling away, and with all indications this can be considered a floor level looking forward (our inference). If so this points to a sustainable EFCF yield of 19% after today’s share price lift.

27/02/2024 1 EN

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MILLICOM

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New Street Research

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Soomit Datta

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TIGO (Neutral, TP: $20, +16%) Millicom Q4s: FCF lift again - does Xavier Niel have the Midas touch?

TIGO (Buy, TP: $34, +29%) Millicom - Q3 24: Solid quarter; raised EFCF guidance

Millicom (Buy, TP: $30, +17%) Multiple M&A’s: Millicom (BUY) in Colombia/Costa Rica – synergies >$1 billion / Q2 24 highlights

TIGO (Buy, TP: $30, +30%) Millicom - Upgrades following Q1s support rapid deleverage. TP to $30 from $24.

Alphabet (GOOGL, Buy, $213 target) Forget Chrome, 3P payments are the heart of the issue

SATS: DBS merger breaks

3Q24 Broadband Trends: FWA capacity limits; FWA demand limits

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