Veon Ltd (NASDAQ:VEON) Stock Gains Momentum: How To Trade Now?
Dutch Telecommunications firm Veon Ltd (NASDAQ:VEON) has done a spate of acquisitions, products as well as service launches, alluring investors as its shares have surged by almost 18% in the last five years.
The company operating in emerging markets like Pakistan, Uzbekistan, Bangladesh, Russia, Ukraine, Kazakhstan, Kyrgyzstan, Algeria and Georgia, has seen its shares surge by 35.8% till yesterday at $2.05.
Despite telecommunications sector having challenges arising from global semiconductor shortage, VEON has expanded operations through big investments as well as acquisitions in key markets, which should provide a thrust to the firm in the long run.
In June, the company acquired majority stake in OTM, Russian ad-tech platform. The firm’s market reach in Russia will let VEON boost its position as the country is likely to witness growth by almost $2 billion in next five years. Earlier in March, the firm had acquired a 15% minority stake in Pakistan Mobile Communications Limited for $273 million.
Additionally, the company’s Bangladeshi subsidiary Bangalinktook over 4.4MHz spectrum and 5MHz spectrum in March and aims to invest $115 million for purchasing the spectrum, resulting it in becoming one of the largest digital service providers in Bangladesh.
The firm had also sold the entire stake of 45.57% in Algerian subsidiary, Omnium Telecom AlgérieSpAon July 1 to Algerian National Investment Fund, Fonds National d’Investissement. The firm had also got multi-year credit revolving facility worth $1.25 billion with international banks in March, which should provide higher liquidity and greater financial flexibility. Analysts on Wall street have recommended a Buy on the stock with a potential upside of over 25%
Market Reaction:
On Wednesday, VEON stock fell 6.35% at $1.92 with more than 14.73 million shares, compared to its average volume of 7.76 million shares. The stock had moved within a range of $1.9000 – 2.0300 after opening the trade at $2.01. Over the past 52-week, the stock has been trading within a range of $1.2000 – 2.2000.
