Barclays Reiterates 'Overweight' Ratings on Safaricom and Zegona After Earnings

Barclays has reaffirmed its Overweight ratings for telecommunications firms Safaricom and Zegona after reviewing their latest financial results. The investment bank adjusted its forecasts to account for recent market trends and foreign exchange movements, according to a research note published on August 3, 2026.

Analyst Upgrades

Barclays updated its financial models for both companies, leading to a price target increase for the Kenyan operator while maintaining the target for its UK-based peer.

Safaricom

For Kenya’s largest telecom provider, Safaricom, Barclays maintained its Overweight rating and raised its price target to KES 39 per share from a previous KES 35. The bank cited several factors for the update:

• Revenue estimates were increased by 1.1% for fiscal year 2027 (FY27E) and 2.2% for fiscal year 2028 (FY28E).
• EBITDA estimates were lifted by 1.2% for FY27E and 2.3% for FY28E.
• Barclays' estimates place Safaricom's valuation at 5.3x FY27E EV/EBITDA, with an estimated 8.9% EFCF (Enterprise Free Cash Flow) yield.

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Zegona

Barclays also kept its Overweight rating on the British company Zegona, holding its DCF-based price target steady at GBp 2500 per share. The firm made modest upward revisions to its revenue forecasts, increasing them by 0.1% for both FY27E and FY28E.

• According to Barclays' model, Zegona trades at 5.7x FY27E EV/EBITDA.
• The company offers a projected 9.3% EFCF yield.

Market Context

The adjustments from Barclays come as investment banks across the industry refine their financial models following the latest round of quarterly earnings reports from European and emerging market companies. These routine updates allow analysts to incorporate new performance data and macroeconomic factors, such as currency fluctuations, into their valuations and investment theses for the sector.