So what’s one of the best share to purchase for a Shares and Shares ISA in the meanwhile? Ought to traders think about one which has taken a beating throughout current market volatility? Or one which’s defied it?

Buyers preferring to purchase winners, fairly than go discount searching among the many losers, would possibly need to think about FTSE 100-listed African telecoms operator Airtel Africa (LSE: AAF). Its shares have climbed 15% within the final month, making it the second-best performer on the FTSE 100, trailing solely gold miner Fresnillo. 

Over the previous yr, the Airtel Africa share price has jumped 55%, and over 5 years it’s soared an astonishing 300%. Solely Rolls-Royce (540%) and personal fairness agency 3i Group (356%) have accomplished higher in that timeframe.

Can Airtel Africa shares proceed to fly?

Regardless of these good points, Airtel Africa stays a inventory many traders overlook, probably as a result of its volatility. It was hit laborious by the slide of the Nigerian naira, which shrank revenues from certainly one of its key markets, as soon as transformed again into sterling. The naira’s been sliding in opposition to the pound for 15 years, though it does appear to have stabilised within the final six months.

I took a more in-depth take a look at Airtel Africa again in February when it was already surging on the again of a powerful set of Q3 outcomes, with income development of 20.4% in fixed foreign money. That translated to a 5.8% drop on a reported foundation, as a result of FX shifts.

Airtel Africa was increasing at tempo. Its whole buyer base grew 7.9% to 163.1m final yr, with information subscribers surging 13.8% to 71.4m. Cellular cash providers had been a serious development driver, with revenues leaping 29.6% in fixed foreign money.

The corporate has additionally been rewarding shareholders, having launched a second $100m share buyback. I noticed huge potential right here, however as with all high-growth inventory, there have been loads of dangers too. 

Share buybacks and a modest dividend

One concern I flagged in February was its rising debt, which had climbed from $3.28bn to $5.27bn in a yr. The board additionally has to speculate closely in its community and digital providers, because it seems to construct smartphone penetration and information utilization, each rising quick.

Telecoms is an inherently high-risk sector, judging by the ups and downs of FTSE 100 operators BT Group and Vodafone.

Regardless of Airtel Africa’s speedy rise, analysts aren’t satisfied the rally will proceed. The 11 analysts protecting the inventory have produced a median goal of simply over 157p. That’s about 5% beneath in the present day’s 165p. Forecasts are sometimes little greater than educated guesses, however this implies the joy could also be cooling.

With a modest trailing dividend yield of two.88%, this inventory’s primarily a development play. And whereas I stay impressed by its efficiency, my view hasn’t modified a lot since February. It’s all too unsure for me.

The inventory has momentum, and for traders who imagine in using robust traits, Airtel Africa’s properly price contemplating. I wouldn’t say it’s the perfect share to purchase in the present day although. It could have accomplished fairly too properly for its personal good, and the expansion may gradual for some time. There’s an thrilling alternative right here, however it’s probably unstable and as a contrarian investor, I really feel I’ll have missed the boat.