Millicom rating cut at Stifel Nicolaus; analyst doesn’t see continued growth in share price
By APTuesday, September 7, 2010
Millicom downgraded at Stifel Nicolaus
SEATTLE — At nearly $100 each, shares of mobile phone operator Millicom International Cellular SA have become appropriately valued, a Stifel Nicolaus analyst wrote Tuesday.
THE OPINION: In a client note, analyst Christopher King noted that Millicom’s stock has outperformed the S&P 500 and other emerging-market wireless carriers this year so far. And the company’s geographic diversity means it will likely continue to increase subscriber numbers. Millicom faces rising competition in Africa, but King wrote he thinks the company is “well-prepared to defend its turf.”
However, King indicated he doesn’t expect the shares to continue growing at the same pace and cut his rating to “Hold” from “Buy.”
THE STOCK: Millicom’s shares slid $1.82, or 1.8 percent, to $96.97 in afternoon trading.
