VEON Has Exposure To 5 High Growth Frontier Markets, Says Bullish Analyst

Shares of Veon Ltd (NASDAQ:VEON) have climbed almost 70% year to date.

The company represents an "opportunity to participate in mobile connectivity and digital services growth for telecom, entertainment and financial services in five high growth frontier markets," according to Benchmark.

Analyst Matthew Harrigan initiated coverage on Veon with a Buy rating and price target of $48.

The five high-growth frontier markets are Pakistan, Ukraine, Kazakhstan, Bangladesh and Uzbekistan, where 4G remains "the most appropriate and economically efficient mobile technology," Harrigan said in the initiation note.

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Providing mobile connectivity, along with digital services like entertainment, education, health care, financial services, and super apps, create "two critical growth vectors," the analyst stated. While the connectivity business "grows faster due to greater customer data consumption, improved retention and ARPU expansion," direct digital revenues also grow, he added.

The digital revenue component is estimated to grow from merely 7% in 2023 to 18% in 2028, Harrigan further said.

Price Action: Shares of Veon had risen by 0.18% to $33.23 in premarket trading on Tuesday.

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