Investment firm Meristem Securities has reiterated its BUY recommendation on MTN Nigeria Communications Plc (NGX: MTNN), setting a 12-month target price of ₦1,019.31 per share. The target represents a +25.67% upside potential from its market price of ₦811.10 per share.
The investment thesis rests on MTNN’s dominant market share in mobile data traffic, expanding 4G/5G network infrastructure, and accelerating consumer demand for digital streaming and enterprise connectivity.
Technical indicators further support the fundamental outlook, with the stock’s Relative Strength Index (RSI) printing at 49.91 points—a neutral technical indicator that signals the equity is neither overbought nor oversold.
Core Investment Drivers & Market Context
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Data Revenue Expansion: MTNN remains the primary beneficiary of Nigeria’s rising data consumption trends. Increased smartphone penetration and expanding broadband coverage continue to drive double-digit growth in active data subscriber numbers and average revenue per user (ARPU).
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Macro Environment & Liquidity Anchor: The equity recommendation comes amid broad market positioning on the Nigerian Exchange (NGX) following August’s profit-taking retreat. With Nigeria’s readmission into the FTSE Russell Frontier Market Index on September 21, large-cap liquid counters like MTNN and Airtel Africa are positioned to capture passive foreign portfolio allocations.
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Technical Setup: The RSI reading of 49.91 confirms that August’s sector-wide pullback (-3.58% MoM for MTNN) has reset technical valuations, leaving capacity for institutional accumulation without immediate resistance pressures.
