Helios Towers: Strong Financial Performance and Positive Growth Outlook Reinforce Buy Rating

Morgan Stanley analyst Emmet Kelly has maintained their bullish stance on HTWSF stock, giving a Buy rating on February 28.

Emmet Kelly has given his Buy rating due to a combination of factors that highlight Helios Towers’ strong financial performance and positive growth outlook. The company reported a significant improvement in free cash flow (FCF) for the fourth quarter, surpassing expectations by 13% and achieving a $100 million year-over-year swing into positive territory. This positive trend is expected to continue, with further FCF improvements projected for the coming years.
Additionally, Helios Towers has set ambitious targets for 2025, including an 8% increase in volume growth and a 10% rise in EBITDA, alongside a return on invested capital (ROIC) target of 14%. The company’s robust tenancy growth, particularly in key markets like the Democratic Republic of Congo, Tanzania, and Oman, further supports this optimistic outlook. The consistent growth in revenue and EBITDA, coupled with the positive guidance for 2025, reinforces the Buy rating, as these factors are likely to drive positive investor sentiment and share price appreciation.

In another report released on February 28, Deutsche Bank also maintained a Buy rating on the stock with a £2.55 price target.