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TAKE PROFITS Airtel Africa (AAF)

Close Airtel Africa (AAF) at market 229p

When we first highlighted Airtel Africa back in 2023, it was a clear case of a high-quality operator in a fast-growing market. Strong customer growth, resilient cash generation and expanding mobile money services gave us confidence in the company’s ability to deliver, and the stock has since gone on to more than double, handing us a 106% gain. It has been a textbook example of identifying a structural growth story early and letting the trend play out.

That said, the investment case looks less compelling today. Valuation has rerated significantly, earnings growth is beginning to lose momentum, and the balance sheet remains burdened by high levels of debt. Rather than chase the next leg higher, we think now is the right moment to crystalise profits and look for opportunities with a better balance of growth, value and risk.

Profit = +106%

AAF Daily Candle Chart