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Wall Street Analysts Think IHS Holding (IHS) Could Surge 45.06%: Read This Before Placing a Bet
ZACKS· 2025-04-16 14:55
Group 1 - IHS Holding (IHS) shares have increased by 14.2% in the past four weeks, closing at $5.06, with a mean price target of $7.34 indicating a potential upside of 45.1% [1] - The average of eight short-term price targets ranges from a low of $4 to a high of $16, with a standard deviation of $3.80, suggesting variability in analyst estimates [2] - Analysts show a consensus that IHS will report better earnings than previously estimated, which is a positive indicator for potential stock upside [4][10] Group 2 - The Zacks Consensus Estimate for IHS has increased by 30.9% over the past month, with no negative revisions, indicating strong earnings prospects [11] - IHS holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates, suggesting significant potential upside [12]
IHS Holding (IHS): Strong Industry, Solid Earnings Estimate Revisions
ZACKS· 2025-04-16 14:35
Company Overview - IHS Holding Limited (IHS) is positioned as an intriguing investment choice within the Communication - Infrastructure sector, benefiting from solid earnings estimate revisions and a favorable industry ranking [1][5]. Industry Analysis - The Communication - Infrastructure industry currently holds a Zacks Industry Rank of 12 out of more than 250 industries, indicating strong overall performance and positioning compared to other sectors [2]. - The industry is experiencing broad trends that are positively impacting securities across the board, suggesting a rising tide effect [2]. Earnings Estimates - IHS Holding has seen significant upward revisions in earnings estimates over the past month, with current quarter estimates increasing from 14 cents per share to 17 cents per share, and current year estimates rising from 55 cents per share to 72 cents per share [4]. - These revisions reflect a more bullish outlook from analysts regarding IHS's short and long-term prospects [3][4]. Investment Recommendation - Given the strong industry performance and positive earnings estimate revisions, IHS Holding is recommended as a compelling option for investors seeking opportunities in a robust industry segment [5].
Volatile Markets? Try These Relative Price Strength Stocks
ZACKS· 2025-04-16 14:10
Core Viewpoint - The stock market is experiencing volatility due to U.S. tariffs and global trade tensions, with the S&P 500 down over 8% for the year [1] Group 1: Market Conditions - U.S. tariffs on imports from major partners like China have reached as high as 145%, while China has imposed 84% duties on U.S. products [1] - Ongoing inflation pressures and concerns about a potential recession or stagflation are contributing to market uncertainty [1] Group 2: Investment Strategy - Investors are encouraged to focus on relative price strength, identifying stocks that outperform their peers even in volatile conditions [2] - Stocks that have shown better performance than the S&P 500 over the last 1 to 3 months, combined with solid fundamentals, indicate potential for growth [6] Group 3: Recommended Stocks - IHS Holding Limited (IHS) is highlighted for its strong growth potential, with a Zacks Consensus Estimate indicating 114.7% growth for 2025 earnings and a market cap of $1.6 billion [10][11] - Atlanticus Holdings Corporation (ATLC) is noted for a 29.4% growth estimate for 2025 earnings and a significant share price increase of 110.5% over the past year [12][13] - REX American Resources Corporation (REX) has a market cap of $676.4 million and a 15.7% upward revision in earnings estimates for fiscal 2026, despite a 31.3% decline in share price over the past year [14][15] - Fresenius Medical Care AG (FMS) is recognized for a 27.1% growth estimate for 2025 earnings and a share price increase of 31.8% in the last year [16][17] Group 4: Screening Parameters - Stocks are screened based on relative price changes over 12 weeks, 4 weeks, and 1 week, as well as positive current-quarter estimate revisions [8] - Only Zacks Rank 1 (Strong Buy) stocks are considered, which have historically outperformed the S&P 500 [9]
Is IHS Holding (IHS) Stock Outpacing Its Computer and Technology Peers This Year?
ZACKS· 2025-04-14 14:46
Group 1 - IHS Holding is currently ranked 1 (Strong Buy) in the Zacks Rank system, indicating a favorable outlook for the stock [3] - The Zacks Consensus Estimate for IHS' full-year earnings has increased by 30.9% over the past quarter, reflecting improved analyst sentiment [4] - Year-to-date, IHS Holding has gained approximately 57.5%, significantly outperforming the average loss of 14.5% in the Computer and Technology sector [4] Group 2 - IHS Holding is part of the Communication - Infrastructure industry, which is currently ranked 16 in the Zacks Industry Rank [6] - The Communication - Infrastructure industry has shown better year-to-date performance compared to the average gain of 1.3% in its group [6] - Another notable stock in the Computer and Technology sector is Okta (OKTA), which has increased by 29.2% year-to-date and has a Zacks Rank of 2 (Buy) [5]
Are Computer and Technology Stocks Lagging IHS Holding (IHS) This Year?
ZACKS· 2025-03-28 14:40
Core Viewpoint - IHS Holding has significantly outperformed its peers in the Computer and Technology sector year-to-date, with a return of 83.9% compared to an average loss of 8.9% for the sector [4]. Company Performance - IHS Holding is currently ranked 1 (Strong Buy) in the Zacks Rank system, indicating strong analyst sentiment and a positive earnings outlook [3]. - The Zacks Consensus Estimate for IHS' full-year earnings has increased by 30.9% in the past quarter, reflecting improved analyst sentiment [3]. - IHS Holding belongs to the Communication - Infrastructure industry, which is ranked 3 in the Zacks Industry Rank, with an average gain of 29.2% year-to-date [5]. Industry Comparison - The Computer and Technology sector includes 603 individual stocks and has a Zacks Sector Rank of 6, indicating its relative performance compared to other sectors [2]. - Another notable performer in the sector is ViaSat (VSAT), which has returned 34.8% year-to-date, but still lags behind IHS Holding [4]. - The Wireless Equipment industry, to which ViaSat belongs, is ranked 37 and has seen a slight decline of 0.6% year-to-date [6].
Why IHS Holding (IHS) Might be Well Poised for a Surge
ZACKS· 2025-03-24 17:21
Core Viewpoint - IHS Holding (IHS) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][3]. Estimate Revisions - The rising trend in earnings estimate revisions reflects growing analyst optimism regarding IHS's earnings prospects, which is expected to positively influence its stock price [2]. - For the current quarter, IHS is projected to earn $0.17 per share, indicating a year-over-year increase of +342.86%. The Zacks Consensus Estimate has risen by 21.43% over the last 30 days due to one upward revision and no negative changes [4]. - For the full year, IHS is expected to earn $0.72 per share, representing a year-over-year change of +114.69%. The consensus estimate has increased by 30.91% in the past month, with one estimate moving up and no negative revisions [5]. Zacks Rank - IHS Holding currently holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts in raising earnings estimates, which historically correlates with outperformance in stock returns [6]. - Stocks with Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500 [6]. Stock Performance - IHS Holding shares have increased by 38.2% over the past four weeks, suggesting strong investor confidence in the company's earnings growth prospects [7].
Is the Options Market Predicting a Spike in IHS Holding (IHS) Stock?
ZACKS· 2025-03-24 15:35
Company Overview - IHS Holding Limited (IHS) is currently experiencing significant attention from investors due to high implied volatility in its options market, particularly the Apr 17, 2025 $7.50 Put option [1] - The company holds a Zacks Rank 1 (Strong Buy) in the Communication - Infrastructure industry, which is in the top 2% of the Zacks Industry Rank [3] Analyst Insights - Over the past 30 days, one analyst has raised the earnings estimate for IHS Holding for the current quarter from 14 cents per share to 17 cents, with no downward revisions [3] - The current sentiment among analysts indicates a positive outlook for IHS Holding, suggesting potential for a significant price movement [4] Options Market Dynamics - The high implied volatility associated with IHS Holding's options suggests that traders are anticipating a substantial price movement, which could be linked to an upcoming event [2][4] - Options traders often seek to capitalize on high implied volatility by selling premium, aiming for the underlying stock to not move as much as expected by expiration [4]
Wall Street Analysts Believe IHS Holding (IHS) Could Rally 35.05%: Here's is How to Trade
ZACKS· 2025-03-24 14:55
Core Viewpoint - IHS Holding (IHS) has seen a significant stock price increase of 38.2% over the past four weeks, closing at $5.25, with analysts suggesting a potential upside based on price targets, indicating a mean estimate of $7.09, which represents a 35.1% upside potential [1] Price Targets and Analyst Consensus - The average price target for IHS includes eight short-term estimates ranging from a low of $4 to a high of $16, with a standard deviation of $3.89, indicating variability among analysts [2] - The lowest estimate suggests a decline of 23.8% from the current price, while the highest estimate indicates a potential upside of 204.8% [2] - A low standard deviation signifies a strong agreement among analysts regarding the stock's price movement direction, which can serve as a starting point for further research [7] Earnings Estimates and Market Sentiment - Analysts have shown increasing optimism about IHS's earnings prospects, as evidenced by a strong consensus in revising EPS estimates higher, which correlates with potential stock price increases [9] - Over the past 30 days, one estimate has increased, leading to a 30.9% rise in the Zacks Consensus Estimate for the current year [10] - IHS holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside [11] Caution on Price Targets - While price targets are a common metric for investors, relying solely on them for investment decisions may not be prudent due to historical inaccuracies in predicting stock price movements [3][5] - Analysts often set optimistic price targets influenced by business relationships, which can lead to inflated estimates [6] - Price targets should be approached with skepticism, and while they can provide directional guidance, they should not be the sole basis for investment decisions [8][12]
IHS (IHS) - 2024 Q4 - Earnings Call Transcript
2025-03-18 21:59
Financial Data and Key Metrics Changes - The company reported a strong performance in 2024, with revenue showing 48% organic growth and adjusted EBITDA reaching $928 million, reflecting a margin of 54.3%, up 100 basis points from 2023 [10][11][12] - ALFCF generation was $304 million, exceeding guidance, driven by operational performance and ongoing CapEx optimization [12][19] - The consolidated net leverage ratio decreased to 3.7 times at the end of 2024, down from 3.9 times at the end of Q3 2024 [13][32] Business Line Data and Key Metrics Changes - Revenue from Nigeria grew approximately 62% on an organic basis, significantly benefiting from FX resets and power indexation, despite a reported revenue decline of 19% year-on-year due to FX headwinds [42][30] - The Sub-Saharan Africa segment saw revenue remain broadly flat, while adjusted EBITDA increased by 29.6% year-on-year, driven by lower costs [44] - In the LatAm segment, towers and tenants grew by 7.9% and 7.2% respectively, but revenue decreased by 18% due to negative FX movements [45] Market Data and Key Metrics Changes - The Nigerian market showed signs of stabilization, with the naira strengthening and the Central Bank of Nigeria increasing interest rates, which positively impacted the FX market [40][41] - The company benefited from a 50% increase in tariffs for mobile network carriers in Nigeria, the first adjustment in 12 years, which is expected to support infrastructure investment [18] Company Strategy and Development Direction - The company is focused on increasing profitability and reducing CapEx to enhance cash flow generation, with a target of raising $500 million to $1 billion through asset disposals [15][25] - Significant commercial progress was made, with 72% of group revenue renewed or extended, improving financial visibility [16][17] - The company plans to utilize excess cash flow primarily for debt reduction, with potential considerations for share buybacks or dividends in the future [25][70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Nigerian market, citing improved macroeconomic conditions and bullish carrier CapEx plans [73][92] - The company anticipates continued organic revenue growth and further improvements in adjusted EBITDA margin and ALFCF generation in 2025 [20][59] - Management highlighted the importance of maintaining a strong balance sheet and expects leverage to remain within the target range of 3 to 4 times in 2025 [59][60] Other Important Information - The company completed the disposal of its 70% stake in IHS Kuwait for an enterprise value of $230 million, which is part of its strategic review to optimize the portfolio [23][24] - The company has made significant enhancements to its governance framework, aligning it more closely with mature US-listed companies [22] Q&A Session Summary Question: Update on Airtel new tenancies in Nigeria - The Airtel contract is progressing well, with significant work completed in the second half of 2024, primarily focused on colocation and 5G lease amendments [67][72] Question: Potential for stock buybacks and dividends - The company is evaluating options for capital allocation, with a focus on asset disposals first, followed by potential share buybacks or dividends [68][70] Question: Progress on portfolio optimization - The company is targeting $500 million to $1 billion in asset disposals, with the Kuwait disposal being a significant step [81][82] Question: Other markets with positive macro indicators - Positive momentum is observed in Francophone Africa and Brazil, with carriers looking to increase CapEx for 5G rollouts [87][90] Question: Constant currency performance metrics by region - The company has not provided forward-looking guidance for constant currency metrics but aims to simplify disclosures for future periods [96][98] Question: CapEx breakdown - Approximately one-third of the anticipated CapEx for 2025 is maintenance-related, with the remainder focused on growth initiatives [101][102] Question: Possible churn in the business - No significant churn is anticipated, with positive leasing trends across major markets [105][106]
IHS (IHS) - 2024 Q4 - Earnings Call Transcript
2025-03-18 17:13
Financial Data and Key Metrics Changes - The company reported a strong performance in 2024, with revenue showing 48% organic growth and adjusted EBITDA reaching $928 million, reflecting a margin of 54.3%, up 100 basis points from 2023 [10][11][12] - The consolidated net leverage ratio decreased to 3.7 times at the end of 2024, down from 3.9 times at the end of Q3 2024 [13][54] - ALFCF generation was $304 million, exceeding guidance, driven by operational performance and ongoing CapEx optimization [12][19] Business Line Data and Key Metrics Changes - Revenue from Nigeria grew approximately 62% on an organic basis, significantly benefiting from FX resets and power indexation, despite a reported revenue decline of 19% year-on-year due to FX headwinds [42][33] - The Sub-Saharan African segment saw revenue remain broadly flat, while adjusted EBITDA increased by 29.6% year-on-year, driven by lower costs and new colocations [44] - In the LatAm segment, towers and tenants grew by 7.9% and 7.2% respectively, but revenue decreased by 18% due to negative FX movements [45] Market Data and Key Metrics Changes - The Nigerian market showed signs of stabilization, with the naira strengthening and an increase in US dollar availability, allowing the company to upstream $271 million from Nigeria in 2024 [14][40] - The Central Bank of Nigeria's recent tariff increase for mobile network carriers is expected to support infrastructure investment and improve service quality [18][73] - The company noted positive momentum in Francophone African markets, with ongoing leasing activity and new build sites [87] Company Strategy and Development Direction - The company is focused on increasing profitability and reducing CapEx to enhance cash flow generation, with a target of raising $500 million to $1 billion through asset disposals [15][25] - Strategic initiatives include extending commercial contracts with key customers and reducing exposure to power prices, aligning operations with more developed markets [16][18] - The company aims to maintain a strong balance sheet and is considering share buybacks and/or introducing a dividend policy following asset disposals [25][70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Nigerian market, citing improved macroeconomic conditions and bullish carrier CapEx plans [73][92] - The company anticipates continued organic revenue growth and further improvements in adjusted EBITDA margin and ALFCF generation in 2025 [20][55] - Management highlighted the importance of maintaining a strong balance sheet and expects leverage to remain within the target range of 3 to 4 times in 2025 [59][60] Other Important Information - The company completed the disposal of its 70% stake in IHS Kuwait, which is expected to enhance its financial profile and visibility [23][24] - The effective withholding tax rate in Nigeria will decrease from 10% to 2% starting January 1, 2025, which is expected to support cash flow generation [19][61] - The company is exploring the introduction of artificial intelligence to improve operational efficiencies [114] Q&A Session Summary Question: Update on Airtel new tenancies in Nigeria - The Airtel contract is progressing well, with significant work completed in the second half of 2024, primarily focused on colocation and 5G lease amendments [66][67] Question: Preference between stock buybacks and dividends - The company is evaluating both options but is currently focused on asset disposals and debt reduction before making a decision on capital allocation [68][70] Question: Progress on portfolio optimization - The company is targeting $500 million to $1 billion in asset disposals, with the Kuwait disposal being a significant step [81][82] Question: Other markets with positive macro indicators - Positive momentum is observed in Francophone markets like Cameroon and Cote D'Ivoire, as well as incremental growth in South Africa and Brazil [87][89] Question: Constant currency performance metrics by region - The company has not provided forward-looking guidance for constant currency metrics but aims to simplify disclosures for future periods [94][96] Question: CapEx breakdown - Approximately one-third of the anticipated CapEx range will be maintenance CapEx, with the remainder focused on growth initiatives [101][102] Question: Potential churn in the business - No significant churn is anticipated, with positive leasing trends across major markets and all contracts renewed into the 2030s [105][106] Question: Confirmation of asset sales target - The target for asset sales remains at $500 million to $1 billion, with a focus on realizing value from various opportunities [108][110]