Airtel Africa Stock: Barclays Boosts Price Target After 90% YTD Gain

Airtel Africa (AAF.L) shares have experienced a significant upswing of late, fueled by robust financial performance and strategic initiatives.

That positive trajectory has led Barclays to raise its price target for the stock in a recent note, further bolstering investor confidence.

Shares in Airtel Africa have demonstrated remarkable growth over the last year or so, climbing 92% year-to-date and almost 90% in the last 12 months.

The surge reflects the company's strong operational execution and successful strategic moves across its African markets. The stock's performance has drawn attention from analysts, with Barclays recently revising its outlook.

Barclays analyst Maurice Patrick increased the firm's price target on Airtel Africa to 240p from 210p, reaffirming an ‘Overweight' rating on the shares. This adjustment signals Barclays' confidence in Airtel Africa's continued growth and strategic direction, even amidst challenging macroeconomic conditions in key markets.

Airtel Africa's financial results have consistently impressed, contributing to the bullish sentiment. In the quarter ended June 30, the company said its total customer base grew by 9% to 169.4 million, with data customers increasing 17.4% to 75.6 million.

Revenue grew 24.9% to $1.42 billion in constant currency and 22.4% in reported currency as currency headwinds continued to ease. Meanwhile, Profit after tax of $156m improved from $31m in the prior period.

Airtel Africa's strategic partnerships and technological advancements have also contributed to its positive trajectory. The company partnered with Google Cloud in May 2024 to support cloud adoption and the development of generative AI solutions for businesses in Africa.

Additionally, in July 2024, Airtel Africa completed a 5G Cloud-RAN trial with Nokia, achieving data throughput of over 1.2 Gbps. These initiatives position Airtel Africa as a leader in technological innovation and digital transformation across the continent.