Airtel Africa (LON: AAF) Shares Soar to New High

Airtel Africa's shares (LON: AAF) have surged to a new 12-month peak of 249 pence, representing a year-to-date (YTD) gain of 109.5%. This impressive upward trajectory reflects a culmination of robust financial results, strategic collaborations, and increasing confidence from its parent company and market analysts.

The stock's ascent is rooted in strong financial performance. Airtel Africa reported a substantial 171% year-on-year increase in profit after tax for Q3 2025. A key driver was the robust performance of its Mobile Money division, which experienced a 29.6% revenue increase in constant currency terms. Despite headwinds from currency devaluations, the company's decision to launch a second $100 million share buyback program signaled management's conviction in the company's intrinsic value and future prospects.

Further bolstering market sentiment was Airtel Africa's strategic network infrastructure sharing agreement with MTN Group, inked in March 2025. This collaborative effort, spanning Uganda and Nigeria, is designed to optimize investment costs and expedite service coverage expansion, particularly in underserved rural areas. The anticipated operational efficiencies and potential profitability gains have been viewed favorably by the markets.

Bharti Airtel's move to increase its stake in its African subsidiary has also contributed to the positive momentum. In February 2025, Bharti Airtel announced plans to raise its ownership in Airtel Africa by up to 5%, from 57.29% to a potential 62.29%. This increased commitment from the parent company reflects a strong belief in Airtel Africa's growth potential and strategic direction, further solidifying investor confidence.

Analyst upgrades have added fuel to the rally. In September 2025, Barclays revised its price target for Airtel Africa upwards to 240 pence from a previous 210 pence, reaffirming an ‘Overweight' rating. This adjustment reflects confidence in the company's ongoing growth and strategic execution, contributing to the overall bullish sentiment surrounding the stock.

The combination of robust financial performance, strategic partnerships, increased parent company investment, positive analyst outlooks, and expansion into new service areas has propelled Airtel Africa's share price to new heights. While currency devaluation risks persist, the company's proactive mitigation strategies have bolstered investor confidence. This confluence of factors has driven the significant YTD gains, and the market will keenly observe whether these tailwinds can sustain the upward momentum in the coming months.

Airtel Africa's expansion into new service areas, particularly cloud and AI, has also garnered market attention. In August 2025, Bharti Airtel's digital unit, Xtelify, introduced a new cloud platform and AI-powered software tools for businesses and telecom operators, which includes partnerships with Airtel Africa. This initiative aims to enhance service offerings and operational efficiency, positioning Airtel Africa favorably within the evolving digital landscape.

Despite these positive developments, Airtel Africa faces challenges, notably from currency devaluations in key markets such as Nigeria and Malawi. These devaluations have impacted reported revenues and profits. The company has proactively implemented strategies to mitigate these risks, including reducing US dollar-denominated debt and building cash reserves.