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IHS Holding Limited’s IHS shares have surged 37.9% in the past year, outpacing the industry and the S&P 500, which have returned 35.3% and 10%, respectively. Shares of this shared communications infrastructure owner and operator have also outshone the Computer and Technology sector, which increased 8.3%, and its peers like Anterix Inc. ATEX and Bandwidth Inc. BAND, which have declined 7.4% and 29.2%, respectively.
IHS Outperforms the Industry, S&P 500 & Peers
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Closing at $4.95 on Tuesday, the stock is trading below its 52-week high of $5.75 but higher than its 52-week low of $2.44. The stock is trading above both its 50-day and 200-day moving averages, indicating solid upward momentum and price stability. This reflects a positive market sentiment and confidence in the company's financial health and long-term prospects.
IHS Shares’ 50-Day and 200-Day SMA
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What’s Driving the Stock?
IHS is benefiting from its growing presence across emerging markets in Africa. Strong demand for its critical infrastructure that facilitates mobile communication coverage and connectivity in the backdrop of increasing 5G deployment has been driving its performance. In the fourth quarter of 2024, the company generated revenues of $437.8 million, reflecting an increase of 39.3% year over year on an organic basis. The results were driven by growth in revenues from colocation (average number of tenants per tower), lease amendments and new sites.
IHS remains well-placed to leverage its market-leading position and capitalize on the growing demand for communications infrastructure solutions, particularly in Nigeria. Exiting 2024, the company’s total number of towers in its largest market, Nigeria, was 16,495, reflecting an increase of 0.6% year over year.
The company is also witnessing strength in the SSA market (comprising South Africa, Cameroon and other countries), supported by the addition of new tenants and higher revenues from colocations and lease amendments. For instance, IHS added approximately 100 towers and more than 800 tenants across the SSA market in 2024. In addition, the deployment of 5G across sub-Saharan Africa and Latin America is expected to drive demand for IHS' towers.
IHS is steadily progressing on its strategic priorities to expand its presence across markets. In 2024, it successfully renewed and extended all MTN MLAs, which include MTN Nigeria. The company also entered into an extended deal with Airtel Nigeria to add 3,950 new tenancies.
However, the company operates in the highly competitive wireless communications market, comprising well-recognised providers of critical infrastructure and broadband solutions. As one of its peers, Anterix is well-known for providing transformative broadband solutions to utility and critical infrastructure customers. Another peer, Bandwidth, operates as a Communications Platform-as-a-Service (CPaaS) provider.