Trade Idea: MTN
Based on earnings valuation metrics, MTN currently seems fully valued, however, given that margins are on a depressed base, we feel the share offers value due to the likelihood of a medium-term margin recovery. The share price is underpinned by an attractive dividend yield of 5.85%, although its sustainability is uncertain. Dividends, going forward, are also likely to be suppressed by the need to increase CapEx, seeing as the group’s relative underinvestment in its network eroded MTN’s competitive position in key markets.
Click here to download the presentation slides as a PDF.
Presented by equity analyst, Tayla Wesson.