IHS Holding Limited (IHS): A Bull Case Theory

We came across a bullish thesis on IHS Holding Limited (IHS) on Deep Value Capital's Substack. In this article, we will summarize the bulls' thesis on IHS. IHS Holding Limited (IHS)'s share was trading at $5.22 as of 28th May.
A telecommunications tower reaching high into the sky, connected to a satellite system.
IHS Holdings (IHS) is a misunderstood infrastructure powerhouse the market has mispriced as a risky, FX-exposed telecom play concentrated in Nigeria. In reality, IHS operates a high-margin telecom tower business across emerging markets like Nigeria and Brazil, where mobile data usage is surging and 4G/5G penetration is set to rise from 57% to 86% by 2029. Its model is simple and scalable: mobile carriers lease space on IHS towers via long-term, inflation-linked contracts—adding tenants drives near-pure profit, with minimal incremental cost.
This recurring, CPI-protected revenue base underpins a robust infrastructure compounding story, with management targeting $1B in run-rate free cash flow (FCF) by 2029. Recent moves validate the strategy: IHS sold a non-core fiber business at 5x its current EBITDA multiple, signaling that the market's current valuation deeply discounts its asset quality. Meanwhile, free cash flow margins are climbing, and the company is trading at a steep discount despite improving fundamentals. Management's guidance for 2025 appears conservative, hinting at a potential beat-and-raise setup.
Despite FX volatility and geopolitical noise, the math points to a 6.5x upside from current levels, with the potential for significant re-rating as investors reappraise IHS as a critical digital infrastructure enabler in fast-growing regions. In the face of rising data demand, tower utilization, and CPI-linked escalators, IHS stands to compound cash flows for years, and recent portfolio actions plus management's capital discipline bolster the bullish case. This is a classic case of market misperception creating outsized opportunity for those willing to look beyond headlines.
For a comprehensive analysis of another standout stock covered by the same author, we recommend reading our summary of their bullish thesis on Atlassian Corporation (TEAM). Since our coverage, the stock is up 2.3%.
IHS Holding Limited (IHS) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held IHS at the end of the first quarter which was 17 in the previous quarter. While we acknowledge the risk and potential of IHS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than IHS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article was originally published at Insider Monkey.
Errore nel recupero dei dati
Effettua l'accesso per consultare il tuo portafoglio
Errore nel recupero dei dati
Errore nel recupero dei dati
Errore nel recupero dei dati
Errore nel recupero dei dati

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Yahoo

4 hours ago

• Yahoo

2 Rallying TSX Stocks You'll Wish You Bought Sooner

Written by Jitendra Parashar at The Motley Fool Canada We've all been there – you check a stock you were eyeing, and boom, it's already up 40% or 50% since you first thought about buying it. That sting of 'I should've bought it' hits hard. The good news is, most growth stories aren't over with just one rally. In fact, some TSX stocks that have surged recently still show strong momentum, supported by their improving fundamentals. In this article, let's look at two Canadian stocks that have been rallying, and why it still might not be too late to buy them for the long term. G Mining Ventures (TSX:GMIN) has seen a massive move lately but still has long-term potential written all over it. This gold miner has been up more than 117% in the last year and trades at $18.72 per share with a market cap of about $4.2 billion. G Mining is developing precious metals projects in Brazil and Guyana, anchored by its producing Tocantinzinho mine and the advancing Oko West project. In the March quarter, G Mining produced over 35,500 ounces of gold at an impressive all-in sustaining cost of US$960 per ounce. Despite some seasonal rain impacting its mining activity, the company still delivered strong free cash flow of US$36 million and net profit of US$24.4 million. Notably, its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) hit US$68.6 million last quarter, showing how well its ramp-up is going. With its production expected to increase through the second half of 2025 as higher-grade ore becomes available, G Mining seems well on track to meet its annual guidance of up to 200,000 ounces. In addition, the company recently released a positive feasibility study for its Oko West project, suggesting an after-tax value of US$2.2 billion and a mine life of over 12 years. For long-term investors seeking exposure to a fast-growing gold producer with exploration upside and strong project economics, G Mining Ventures could be a compelling stock to consider. Another TSX stock that's been gaining solid momentum in 2025 is Aritzia (TSX:ATZ). This company's growth story is hard to ignore right now. The Vancouver-based apparel retailer is known for its portfolio of exclusive fashion brands and strong e-commerce platform. Aritzia stock has surged nearly 79% over the past year and currently trades at $67.44 per share with a market cap of $7.7 billion. In its most recent quarter (ended in February 2025), Aritzia delivered 31.3% YoY (year-over-year) sales growth with the help of strong U.S. demand and e-commerce sales. For the quarter, its adjusted earnings also shot up 156% YoY, and its adjusted EBITDA margin improved to 18% from 10.6%. Notably, the company opened 12 new boutiques in its fiscal year 2025 (ended in February), including a flagship on Manhattan's Fifth Avenue, and it's not slowing down. With its net revenue expected to grow up to 19% in fiscal 2026, Aritzia is leaning into its growth drivers, even as U.S. tariffs add some complexity. For investors looking beyond the short-term market noise, this fashion stock has all the right ingredients for solid upside. The post 2 Rallying TSX Stocks You'll Wish You Bought Sooner appeared first on The Motley Fool Canada. More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Jitendra Parashar has positions in Aritzia. The Motley Fool has positions in and recommends Aritzia. The Motley Fool has a disclosure policy. 2025

Yahoo

4 hours ago

• Yahoo

Axiom Intelligence Acquisition Corp 1 Announces Completion of $200 Million Initial Public Offering

New York, New York, June 20, 2025 (GLOBE NEWSWIRE) -- Axiom Intelligence Acquisition Corp 1 (NASDAQ:AXINU) (the 'Company') today announced the closing of its initial public offering of 20,000,000 units, which includes 2,500,000 units sold pursuant to the partial exercise of the underwriters' over-allotment option. The offering was priced at $10.00 per unit, resulting in gross proceeds of $200,000,000. The Company's units commenced trading on the Nasdaq Global Market ('Nasdaq') under the symbol 'AXINU' on June 18, 2025. Each unit issued in the offering consists of one Class A ordinary share of the Company and one right to receive one tenth (1/10) of one Class A ordinary share upon the consummation of the Company's initial business combination. Once the securities comprising the units begin separate trading, the Class A ordinary shares and rights are expected to be listed on Nasdaq under the symbols 'AXIN' and 'AXINR,' respectively. The Company is a blank check company formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. While the Company may pursue an initial business combination target in any stage of its corporate evolution or in any industry or sector, the Company intends to focus its initial search on companies in the European infrastructure industry. The Company's management team is led by Richard Dodd, its Executive Chairman, Douglas Ward, its Chief Executive Officer, Daniel Mamadou-Blanco, its President, Robert Dilling, its Chief Financial Officer, and Chris Ackermann, its Chief Operating Officer. Dr. Claire Handby, Steven Leighton and Christopher Ellis are the Company's independent directors and Sankalp Shangari and Wendy Li are its senior advisers. Cohen & Company Capital Markets, a division of J.V.B. Financial Group, LLC, acted as the lead book-running manager for the offering. Seaport Global Securities LLC acted as joint book-runner. A registration statement relating to the units and the underlying securities was declared effective by the Securities and Exchange Commission on June 17, 2025. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering was made only by means of a prospectus, copies of which may be obtained from Cohen & Company Capital Markets, 3 Columbus Circle, 24th Floor, New York, NY 10019, Attention: Prospectus Department, or by email at: capitalmarkets@ Copies of the registration statement can be accessed for free through the SEC's website at Forward-Looking Statements This press release contains statements that constitute 'forward-looking statements,' including with respect to the anticipated use of the net proceeds of the offering and the Company's search for an initial business combination. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company's registration statement and final prospectus for the offering filed with the Securities and Exchange Commission. The Company undertakes no obligation to update these statements for revisions or changes after the date of this press release, except as required by law. Contact Information: Axiom Intelligence Acquisition Corp 1Richard Dodd, Executive Chairman / Doug Ward, Chief Executive Officercontact@ +44 20 3973 7928

Bloomberg

6 hours ago

• Bloomberg

In a Global Storm, Markets Reward Indifference

Amid the geopolitical and economic maelstroms of 2025, diversified investors may end up remembering the first six months for something altogether less dangerous or dramatic. In the face of bloody conflicts stretching from Europe to the Middle East and Africa, a chaotic trade war and America's deepening domestic crises, the year has still managed to see the strongest stretch of synchronized market gains in years. Rather than spelling a slow-motion disaster for bulls, months of whiplash across equities, fixed income and commodities have rewarded strategic indifference while punishing overconfidence. Strategies that spread risk across assets are outperforming by near-historic margins, a shift from the concentrated bets that favored the likes of Big Tech stocks in recent years.