Online Reporter
Nelson Gahadza [email protected]
INVESTMENT research firm IH Securities says Econet Wireless Zimbabwe shares remain significantly undervalued despite the telecommunications giant delivering strong financial results, with the brokerage projecting a 91 percent upside in the stock over the next 12 months.
The assessment comes as Zimbabwe’s largest telecoms operator accelerates its transformation into an artificial intelligence (AI)-enabled digital services company.
In its latest equity research update, IH Securities assigned an undervalued recommendation to Econet, setting a 12-month target price of US$0,96 per share against the current over-the-counter reference price of US$0,50 following the company’s voluntary delisting from the Zimbabwe Stock Exchange.
The brokerage said the discount primarily reflects frontier market risks and pricing inefficiencies in the over-the-counter market rather than any deterioration in the company’s underlying business fundamentals.
“IH Securities has revised its valuation methodology to place greater emphasis on the company’s intrinsic cash flow generation, reflecting confidence in Econet’s long-term earnings potential,” the report said.
The optimistic outlook follows a strong performance in the financial year ended February 28, 2026, during which Econet recorded a 23 percent increase in revenue to US$1,1 billion, buoyed by growth across its core telecommunications, data and fintech operations.
Net income attributable to shareholders surged 142 percent to US$229 million, largely driven by a sharp decline in exchange losses, while earnings before interest, tax, depreciation and amortisation (EBITDA) reached US$459 million, translating to a robust margin of 40,6 percent.
IH Securities said Econet’s ongoing transition from a traditional telecommunications operator to an AI-enabled digital services provider is expected to emerge as a key growth catalyst in the coming years.
During the year under review, the company commissioned 200 new base stations, including 95 fifth-generation (5G) sites, significantly enhancing network coverage and capacity across the country.
Data traffic doubled over the period, while voice traffic grew by 35 percent, underscoring rising demand for digital connectivity and communication services.
The brokerage also highlighted sustained momentum within EcoCash, where increased transaction volumes and a growing customer base continued to support the expansion of the fintech business.
The mobile money platform was further strengthened through technology upgrades and the introduction of new financial inclusion services aimed at broadening access to digital financial solutions.
Data and internet services remained Econet’s largest revenue stream, contributing 41,6 percent of total revenue. Airtime sales accounted for 28,3 percent, while mobile money services contributed 11,2 percent.
Looking ahead, IH Securities forecasts revenue growth of 13,5 percent to US$1,28 billion in the current financial year, supported by continued growth in data consumption, stronger mobile money activity and additional revenue streams from AI-enabled services.
The research firm projects EBITDA of US$552 million, which would lift margins to 43 percent, while net profit is expected to rise to US$329 million as operational efficiencies improve and exchange losses remain contained.
IH Securities said Econet’s dominant position in Zimbabwe’s telecommunications sector provides a strong
foundation for sustained earnings growth and long-term value creation.
According to the latest Postal and Telecommunications Regulatory Authority of Zimbabwe statistics cited in the report, Econet controls approximately 73,75 percent of the country’s active mobile subscriptions, maintaining a commanding lead over its competitors in the domestic market.
