Scotiabank upgraded Millicom to Outperform from Sector Perform with a price target of $37.30, up from $30. The stock has done little since the conclusion of the Atlas offering, but the free cash flow yield at 14.2% is one of the sector’s highest, the analyst tells investors in a research note. The firm says the tower sale “may provide substantial cash firepower” to launch an aggressive buyback program even if organic free cash flow is withheld for acquisitions in Colombia. In addition, Scotiabank says the appointment of Maxime Lombardini “may reinforce the iron-hand approach towards costs.”
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