Millicom International Cellular Q2 Earnings Preview (Rating Downgrade)

Michael Dion
738 Followers
(7min)

Summary

  • Millicom's Q2 earnings preview includes EPS of $0.54 and revenue of $1.48 billion, with limited revisions.
  • DCF analysis suggests a price target of $21.80, a 12% downside from current price, leading to a rating downgrade from buy to sell.
  • Market has recognized Millicom's value, but the share price may be overvalued; potential upside from acquisition or further cash flow improvement, but downside risks remain.

Cell phone or mobile service towers

energyy

I am updating my previous analysis for Millicom International Cellular (NASDAQ:TIGO) in advance of Q2 2024 earnings, which will be released pre-market on August 2nd. I previously rated Millicom a buy for the following reasons:

  • The business was

This article was written by

738 Followers
Michael (Mike) Dion is an FP&A leader with finance experience across multiple industries, including Telecom, Media and Entertainment, Hospitality, and Construction. He founded Mike's F9 Finance, a website that helps Finance professionals accelerate their careers. His investment approach is informed by both Fortune 100 and small business experience. He looks for value opportunities where other investors overreact to bad news or underreact to good news—always backed up by strong fundamentals and preferably a dividend. Cash flow isn't just king for companies; it's critical for investors at all levels.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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