MTN Group Making Progress, But Not Fast Enough To Shift Sentiment

Between foreign currency weakness, resumed sanctions on Iran, local economic concerns, and competitive pressures, MTN Group (OTCPK:MTNOY) isn’t getting much credit for the progress it has made. New management hasn’t been in place long, but the renewed focus on cost-effective service quality and responsible portfolio management looks like the right strategy to drive long-term value.

Although MTN Group shares do look meaningfully undervalued, the troubles in Turkey show how quickly and how dramatically adverse currency moves can decimate the value of a holding. While that’s an apples-to-oranges comparison for MTN Group, South Africa isn’t exactly in superior shape and the risk of ongoing economic and currency challenges in major markets like South Africa and Nigeria is likely to keep a lid on sentiment until MTN Group logs multiple better-than-expected quarters.

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MTN Group Making Progress, But Not Fast Enough To Shift Sentiment