We came across a
bullish thesis on IHS Holding Limited on Valueinvestorsclub.com by tps12. In this article, we will summarize the bulls’ thesis on IHS. IHS Holding Limited's share was trading at $5.89 as of July 18
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A close-up of an array of cell towers on a distant hilltop.
IHS Holding Limited (IHS), a leading emerging market cell tower owner and operator primarily in Africa and Brazil, has seen its shares fall ~70% since its 2021 IPO, weighed down by hyperinflation, currency devaluation, customer concentration, and governance issues. These headwinds are now reversing, with IHS trading at ~5x EBITDA and offering a 20% levered free cash flow yield, while management takes concrete steps to unlock value.
A 2024 strategic review, prompted by activists, led to $500M of asset sales at 14x and 8x EBITDA multiples, reducing net leverage to 3.1x within its 3–4x target range. With capex rationalized (Q1 2025 down 18% YoY, cash conversion ~60%), buybacks and dividends are set to commence in H2 2025. Nigeria, its largest market (~58% of 2024 revenue), has stabilized post-2023 FX unification, narrowing USD/NGN spreads and improving dollar liquidity, while governance disputes with key shareholder MTN have been resolved, securing a major contract renewal through 2032.
IHS’s portfolio of high-demand assets, evidenced by recent premium-multiple disposals, underscores the disconnect with its depressed trading valuation. Even at conservative assumptions, guidance implies a 10% net FCF yield, leaving capacity for a 2% dividend and meaningful buybacks.
Although risks remain, particularly Nigeria’s geopolitical environment and currency volatility, the company’s fundamentals and capital allocation discipline suggest a path toward rerating. With a long runway for double-digit growth in core markets and tangible capital returns, IHS offers a compelling opportunity where multiple catalysts—stabilized FX, governance resolution, deleveraging, and buybacks—could drive substantial upside.
Previously we covered a
bullish thesis on IHS Holding Limited by Deep Value Capital in May 2025, highlighting its misunderstood high-margin tower business and potential multi-bagger upside from rising data demand. The stock has appreciated ~12.8% since our coverage as FX stabilization and portfolio actions unfold. tps12 shares a similar view but emphasizes catalysts from strategic review, asset sales, deleveraging, and capital returns.
IHS Holding Limited is not on our list of the
30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held IHS at the end of the first quarter which was 17 in the previous quarter. While we acknowledge the potential of IHS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the
best short-term AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. 
