TIGO Stock Forecast & Price Target

Millicom International Cellular, through its robust presence in Latin America, serves approximately 42 million customers via its wireless networks and 4 million broadband customers through its fixed-line services, indicating a strong operational foundation. The company's impending acquisitions of Telefonica's operations in Ecuador and Uruguay, alongside the consolidation of TIGO-Coltel, are expected to enhance its market position despite the forecasted 74% increase in net debt. This strategic expansion could potentially lead to improved economies of scale and service offerings, positioning Millicom favorably for future growth in a region characterized by increasing demand for integrated telecommunications services.

Millicom Intl Cellular's low capex-to-sales ratio of 12.2% in 2024 indicates limited investment in growth and infrastructure, potentially amplifying competitive disadvantages, particularly in a rapidly evolving telecom landscape. The entry of new competitors, such as Nubicom SRL in Argentina deploying a new 5G network, poses additional risks, likely leading to pressure on average revenue per user (ARPU) and operating margins. These factors collectively raise concerns about Millicom's ability to sustain its market position and profitability in a competitive and price-sensitive environment.