Helios Towers: Top-Pick Buy on Accelerating Growth, Deleveraging, and Structural African Demand Tailwinds

Emmet Kelly, an analyst from Morgan Stanley, maintained the Buy rating on Helios Towers. The associated price target is p230.00.

Emmet Kelly has given his Buy rating due to a combination of factors that underscore Helios Towers’ attractive growth and valuation profile. He highlights the company’s accelerating EBITDA expansion, underpinned by strong tenancy growth and disciplined cost control, alongside a meaningful reduction in leverage over the past few years. Kelly also points to management’s capital allocation plans, including the introduction of a dividend and an ongoing share repurchase program, as clear signals of confidence in future cash generation and shareholder returns.

Emmet Kelly’s rating is based on the view that Helios Towers is uniquely positioned to benefit from Africa’s powerful long-term mobile and data demand trends, supported by robust population and economic growth across the continent. He notes that Helios is adding new sites, creating additional revenue streams, and that its exposure to resource-rich, underpenetrated markets offers a structural growth runway well beyond 2030. Finally, he argues that the stock continues to trade at a compelling discount to Western tower peers on metrics such as EV/EBITDA and free cash flow yield, and he reinforces his bullish stance with a higher target price and designation of the stock as a top pick within the European towers sector.

According to TipRanks, Kelly is a 4-star analyst with an average return of 7.0% and a 55.42% success rate. Kelly covers the Communication Services sector, focusing on stocks such as Vodafone, Royal KPN NV, and Deutsche Telekom.