MTN

Finweek English Edition - - INVESTMENT -

BUY Absa I nvest­ments r ecent l y up­dated its re­search on telecom­mu­ni­ca­tions group MTN fol­low­ing a trad­ing up­date. Lance Gor­don, port­fo­lio man­ager, told clients: “MTN re­mains on track to meet its un­changed guid­ance for f inan­cial year 2013, spear­headed by a pleas­ing Nige­rian per­for­mance.

While con­cerns about t he softer con­sumer en­vi­ron­ment and in­ten­si­fy­ing com­pe­ti­tion re­sulted in a weak­erthan-an­tic­i­pated SA per­for­mance, this ap­pears to be more in­dus­try-specif ic than com­pany-spe­cific. The im­pact of Nige­rian reg­u­la­tory changes on MTN’s Nige­rian con­tri­bu­tion re­mains to be seen.

The share is cur­rently trad­ing on a 15x P/ E and a very at­trac­tive 5% div­i­dend yield. Earn­ings per share and div­i­dends per share are likely to con­tinue to grow pro­vid­ing the po­ten­tial for share price ap­pre­ci­a­tion.”

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