1. IHS Holding Limited (NYSE:IHS)
Average Analyst Share Price Target Upside: 217%
Average Analyst Share Price Target: $8.40
Number of Hedge Fund Investors in Q1 2024: 10
IHS Holding Limited (NYSE:IHS) is a Britain based communications infrastructure firm with facilities in Africa, Latin America, and the Middle East. Citi last covered its shares in May 2024, when it kept a $3.70 share price target and a Buy rating for the shares. The target was cut from $8 in February due to IHS Holding Limited (NYSE:IHS)’s over exposure to Nigeria and the devaluation of that country’s currency which means that the firm’s revenue to US investors dropped. The bank stressed in February that IHS Holding Limited (NYSE:IHS) needs to formulate a value creation particularly due to the high risk of customer churn. Like APLD, IHS Holding Limited (NYSE:IHS) is also divesting some of its business units to generate cash, and this can lead to as much as $1 billion in proceeds for the firm. During Q1, the firm added 270 new tenants and expanded its communications footprint in the highly lucrative market of Brazil.
As for its value creation plan, here’s what IHS Holding Limited (NYSE:IHS)’s management shared during its Q1 2024 earnings call:
“We continue to look at all options through a value-creation lens with the goal of maximizing the value of our assets and therefore value for shareholders over the near, medium and long term.
There are a number of areas of focus here. One, increasing our operating profitability and substantially reducing our CapEx to increase cash flow generation, which is reflected in our 2024 guidance and implies a notable step-up in adjusted EBITDA margins for the remainder of the year and a significant reduction in CapEx year-over-year. Two, we continue to review our portfolio of markets to determine the right composition for IHS going forward. This is expected to include the disposal of certain markets with a target of raising $500 million to $1 billion over the next 12 months. And three, capital allocation of increased cash flow and disposal proceeds raised, are expected to be primarily derived utilized to reduce debt. However, we will also consider deploying excess proceeds through share buyback and or introducing a dividend policy.
To be clear, these initial targets do not rule out further initiatives to continue increasing shareholder value, which we continue to assess in parallel. While it’s only been two months, we’re off to a good start, with significant work already completed by us and our advisors to identify and analyze these various opportunities. We will continue providing updates as we progress.”
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