JPMorgan raises Millicom price target to $63 on strong results and acquisitions

JPMorgan has raised its price target for Millicom International Cellular SA (TIGO) to $63.00 from $55.00, maintaining an Overweight rating, following the company's strong Q3 2025 results that significantly surpassed EPS and revenue forecasts. The upgrade is attributed to stronger market trends, recent acquisitions, and TIGO's robust financial performance, including a 115% rally over the past year, a healthy 5.96% dividend yield, and a low P/E ratio of 7.82. Despite its substantial gains, JPMorgan believes TIGO remains undervalued, projecting a 25% potential upside, or 38% when including dividends.

Analysis

JPMorgan has upgraded Millicom International Cellular SA (TIGO) by raising its price target to $63.00 from $55.00, while maintaining an Overweight rating. This revision follows TIGO's robust Q3 2025 earnings, where EPS of $1.17 significantly surpassed the $0.65 forecast and revenue of $1.42 billion exceeded the $1.4 billion projection. The strong performance reflects positive investor sentiment and highlights the company's operational strength.

The price target increase is attributed to stronger market trends in several regions and the strategic acquisitions of Telefonica Uruguay and Ecuador. Millicom exhibits strong fundamentals, including a healthy gross profit margin of 76.96% and a diluted EPS of $6.48 for the last twelve months. InvestingPro rates the company's financial health as "GREAT," underscoring its solid operational foundation.

Despite a substantial 115% rally over the past year, outperforming the MSCI LatAm index's 36% gain and key regional peers, JPMorgan believes TIGO remains undervalued. The stock trades at a low P/E ratio of 7.82 and offers an attractive 13% free cash flow yield, significantly higher than competitors. JPMorgan projects a 25% potential upside, or 38% including dividends, from the current price.

TIGO presents an appealing option for income-focused investors, offering a substantial 5.96% dividend yield with a $3.00 dividend per share. This strong capital return, combined with the company's growth trajectory and favorable valuation, enhances its overall investment profile.

Key Decisions for Investors

• Consider TIGO for growth and income portfolios given its strong Q3 2025 earnings beat, strategic acquisitions, and substantial 5.96% dividend yield.
• Evaluate the potential 25-38% upside identified by JPMorgan, supported by a low P/E of 7.82 and a high free cash flow yield of 13% relative to peers.
• Monitor integration progress of recent acquisitions and sustained market trend strength, as these are key drivers for continued outperformance and valuation justification.