VEON Ltd. ($VEON): Banking on Ukraine’s Digital Rebuild
2025-07-15Change from report: -4.3%1M: +9.5%3M: -2.7%
VEON Ltd. (NASDAQ: VEON) presents a high-risk, high-reward opportunity following its strategic exit from Russia and pivot to frontier markets. Trading at a deep discount to intrinsic value, the company offers compelling valuation metrics (forward P/E ~7.8x, EV/EBITDA 3.52x) alongside strong digital revenue growth (+50% YoY) and a transformed balance sheet (net debt/EBITDA 1.23x). Key catalysts include the planned 2025 Nasdaq listing of its Ukrainian crown jewel Kyivstar and potential dividend reinstatement. However, severe geopolitical risks in Ukraine, Pakistan, and Bangladesh, plus structural FX headwinds, warrant caution. Recommended as a Speculative Buy exclusively for investors with high risk tolerance and long-term horizons.