IHS Holding Limited (IHS): A Bull Case Theory 

We came across a bullish thesis on IHS Holding Limited on DeepValue Capital’s Substack. In this article, we will summarize the bulls’ thesis on IHS. IHS Holding Limited’s share was trading at $8.00 as of January 29th. IHS’s trailing P/E was 5.76 according to Yahoo Finance.

IHS Holdings ($IHS) is a multinational cell tower company operating across Africa and South America, trading at a compelling 5x EV/EBITDA despite similar margins and lower leverage compared to peers. The company builds and manages towers, leasing space to mobile carriers under long-term, inflation-linked contracts, with most revenues reset monthly based on exchange rates. IHS is the fifth-largest multinational tower operator globally, with a dominant presence in Nigeria, Brazil, and South Africa, and number-one market share in six countries.

While currency headwinds, particularly a 75% devaluation of the Nigerian Naira in 2023–24, previously masked the company’s performance, these pressures are now reversing, with the Naira appreciating over 13% in the past year, turning FX into a tailwind. Operational efficiency has also improved, with record adjusted free cash flow margins of 27.3% and leaner administrative costs. Macro trends further support growth, with data usage expected to expand at a 21.2% CAGR through 2029 and 4G/5G penetration rising to 86%, driving demand for additional tower space and new site construction. IHS continues expanding, including a partnership in Brazil to add up to 3,000 towers, complementing 405 new sites built year-to-date.

Debt is well-managed at 3.3x net leverage, below competitors, and cash and divestitures provide additional financial flexibility. Management plans disciplined capital allocation, including potential shareholder returns and further disposal of non-core assets. Despite execution and emerging-market risks, IHS is positioned for steady growth, with projected 2029 revenues of $2.8B, adjusted free cash flow of $798M, and an implied share price of $28.50, offering over 300% upside from today’s ~$7. The combination of structural improvements, FX normalization, and attractive valuation creates a compelling long-term investment opportunity.

Previously we covered a bullish thesis on IHS Holding Limited (IHS) by Deep Value Capital in May 2025, which highlighted the company’s high-margin telecom tower business, CPI-protected contracts, rising free cash flow, and potential for re-rating as FX pressures eased. The stock has appreciated approximately 53.25% since coverage. The thesis still stands as IHS expands towers and improves efficiency, with Deep Value Capital emphasizing FX tailwinds and new growth initiatives.

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Disclosure: None.