IHS Holding initiated with an Overweight at Wells Fargo

Wells Fargo analyst Eric Luebchow initiated coverage of IHS Holding with an Overweight rating and $12 price target. The analyst notes the stock is down -66% since its IPO close price, largely based on technical issues deriving from its limited public float. As more shares come to market, Luebchow sees significant upside opportunity to broaden the investor base and focus on its attractive fundamentals — including an 11% organic revenue growth CAGR through 2025; share repurchase optionality; and margin expansion as it reduces its diesel fuel exposure. At only 4-times 2023 EBITDA, he views downside risk as more limited, and upside potential as very significant for long-term shareholders seeking exposure to a resilient, secular growth story.