By Ana Monteiro; Jan. 13 (Bloomberg)

-- Safaricom Ltd., Kenya’s biggest mobile-network operator, had its price estimate raised to 6.40 shillings at Morgan Stanley, from 4.80 shillings.

“We reiterate our overweight on Safaricom, supported by a solid earnings backdrop for the next 12 months,” analysts including Sean Gardiner and Madhvendra Singh wrote in an e- mailed note to clients today.

“We think the revenue environment is conducive to a positive surprise -– repair of the voice market is underway, M- PESA spend per user is growing and we are seeing new broadband revenue streams,” Morgan Stanley said, with M-PESA referring to the company’s money-transfer service.

Morgan Stanley estimates 22 percent group revenue growth in 2010 and a further 16 percent in 2011 compared with 12 percent and 10 percent previously. It also sees “room for positive surprise” on dividends.
Last Updated: January 13, 2010 01:58 EST

LOL... I wish I knew but at the AGM, they indicated they would continue hedging. My comments are based on the hedges in place on 31 Mar 2009 (& 30 Sep 2009). The strike price was $110 for these which means KQ will continue paying out cash for these hedges.

The good news would be that KQ had taken the loss on their books... (on paper not cash payout)... So now they can 'writeback' some of these paper losses.

Only if you were saying it would not... I have been bullish on KQ...

Interestingly, since this rally began, richlive.co.ke has clogged up...it is difficult to log-in and view demand/supply figures

Mlefu,

Where art thou?

Pierce is looking 4 u .....