CGF Bourse reiterate it’s BUY rating on Sonatel, and have revised it’s target price up to XOF 18,500, mainly due to its demonstrated ability to defend and grow its market share in key geographies such as Senegal and Guinea, besides implementing strong cost control initiatives that have expanded margins.
However, increasing saturation in its existing markets, escalating competitive pressure, coupled with political instability in Mali and Guinea Bissau, raises serious concerns regarding the sustainability of Sonatel’s revenue growth, highlighting the need to expand into new geographies, preferably through theinorganic route.
Source: CGF Bourse
