Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Sunday share tips: Airtel Africa, Kier

(Sharecast News) - The Sunday Times's Lucy Tobin told readers that shares of Airtel Africa were a 'buy', pointing to the telecom group's footprint in Africa and fast-growing money transfer unit.

FTSE-100 listed Airtel Africa was the second-largest operator in Africa serving 138m customers.

Its main markets in Nigeria, the Congo and Chad, as well as Kenya, Uganda and Tanzania, all suffered from limited infrastructure, but enjoyed a burgeoning population and urban middle classes.

Customer count jumped by 10% in 2022 for 12% growth in revenues over the last nine months of the year.

Revenues at the mobile money-transfer arm surged by nearly a third during the previous year and a flotation of the unit was a possibility, which would translate into a bonanza for shareholders.

But don't bet your pension on the business, Tobin cautioned.

Competitors were stepping in and the region was both politically restless and prone to legal and regulatory uncertainty.

There was also Airtel Africa's restrictive ownership to contend with, what with 56% of the company controlled by Bharti Airtel.

Nevertheless, changing hands on a 2023 price-to-earnings multiple of 8.1, the shares were "cheap".

"For an investor who can stomach the risks of currency volatility, rocky politics, high spectrum costs and debt manoeuvrings, this company is a buy."

The Financial Mail on Sunday's Midas column said shares of Kier were a 'buy', touting the company's leadership, bidding discipline, low valuation versus peers and potential restart of its dividend.

Andrew Davies, the construction and infrastructure services group's boss, recently said the order book was up by 29%, providing visibility.

Furthermore, 60% of the order book was composed of contracts with reimbursable costs, he said.

The company's recent restructuring had done much to strengthen its position, some analysts added.

Most analysts were also anticipating a dividend from the group in 2024.

On the downside, there were risks in the form of delays to procurement and to secured projects such as HS2.

"Kier is still indebted, and there is still anxiety over the sector and Kier specifically," Midas said.

"However, it is possible to see far further into Kier's future than in previous years and it could be bright."

Share this article

Related Sharecast Articles

Friday newspaper round-up: Barclays, BP, JPMorgan
(Sharecast News) - The UK government will "wait and see" whether tariffs announced by Donald Trump "actually come to pass", a senior minister said. The US president announced what he called "reciprocal tariffs" on all other countries on Thursday evening, claiming it was "fair to all". But it was unclear how this would apply to the UK, especially as Trump suggested his policy regarded VAT as a tariff. - Guardian
Thursday newspaper round-up: Solar panels, OBR, Chevron
(Sharecast News) - California's home-insurance safety net does not have enough money to pay all of the claims from damage caused by the Los Angeles wildfires and has asked private insurers to contribute $1bn toward those claims. All private insurers operating in California are required to contribute to the Fair plan, a plan of last resort established so all Californians would have access to fire insurance. More than 450,000 California homeowners got their insurance through the Fair plan in 2024 - more than double the number in 2020. As of 4 February, the plan had received more than 4,700 claims from the Palisades and Eaton fires, almost half of which were for "total losses". - Guardian
Wednesday newspaper round-up: British economy, Heathrow, FOS
(Sharecast News) - The British economy is on course to expand by 1.5% this year after the budget gave a boost to public spending but could be blown off course if Donald Trump goes ahead with threatened tariffs, a leading economic thinktank has warned. In a boost to Rachel Reeves after a bruising month of negative economic figures, the National Institute of Economic and Social Research (NIESR) upped its annual growth prediction from 1.2% to 1.5%. - Guardian
Tuesday newspaper round-up: OpenAI, EVs, gas prices
(Sharecast News) - Elon Musk escalated his feud with OpenAI and its CEO Sam Altman on Monday. The billionaire is leading a consortium of investors that announced it had submitted a bid of $97.4bn for "all assets" of the artificial intelligence company to OpenAI's board of directors. The startup, which operates ChatGPT, has been working to restructure itself away from its original non-profit status. OpenAI also operates a for-profit subsidiary, and Musk's unsolicited offer could complicate the company's plans. The Wall Street Journal first reported the proposed bid. - Guardian

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.