Millicom International Cellular (MICC) An Attractive Proposition With Solid 2010 Outlook

Citigroup (NYSE: C) reiterated its “Buy” rating for Millicom International Cellular (NASDAQ: MICC), and kept the target price unchanged at $100.

Analyst James Rivett views Millicom as an attractive long-term target and hence, Citigroup’s 2010E/2011E EBITDA tops consensus estimate by 3% to 5%. In fact, estimates are likely to be revised upwards given the recent macro improvements.

In certain countries, Millicom’s remittances (which have a 90% correlation with ARPU) have returned to pre-crisis levels. Millicom’s growth profile and asset mix suggest that in an M&A scenario, it could command a premium valuation of upto $130 per share.