Nowadays, it seems all the hype is around semiconductors and AI tech. But often, it’s the smaller companies supporting these technologies that benefit the most.

For example, Helios Towers (LSE: HTWS) is a lesser-known FTSE 250 telecoms infrastructure group operating across Africa and the Middle East.

That’s a double-whammy advantage right there: in-demand critical infrastructure and revenue streams from two of the world’s fastest growing regions.

Rapid population growth combined with AI-driven demand for mobile connectivity puts the business in an excellent position.

Early in May 2026, the share price surged to record highs after it raised its annual profit outlook. Up 85.2% in the past year, the company’s market cap now exceeds £2.26bn.

But that begs the question — is the growth already factored in, or could it keep going?

The bull case looks strong

Helios’s Q1 2026 update, published on 7 May, showed adjusted EBITDA of $127.2m, up 14% year on year, with revenue rising 12% to $229.2m.

It also lifted full-year adjusted EBITDA guidance to $515m–$530m and now expects 3,000–3,500 tenancies added in 2026 (compared with its earlier 2,000–2,500 target).

The company now operates more than 14,000 sites across Africa and the Middle East, giving it scale in markets where mobile usage is still growing faster than in developed economies. 

“Demand for data and connectivity across Africa and the Middle East remains exceptionally strong, with our mobile operator customers accelerating investment, driving significantly increased demand for our infrastructure.”

Helios Chief executive Tom Greenwood

That matters because it links the growth story directly to customer demand, not just management optimism.

But what do the experts think?

Overall sentiment is positive

Berenberg reiterated its Buy rating on 7 May and raised its target price from 230p to 275p. “We upgrade our FY26, FY27 and FY28 forecasts for recurring free cash flow by 7%, 4% and 5%, respectively,” it said.

Helios’s own investor relations page also shows other recent targets of 295p from Morgan Stanley, 285p from Deutsche Numis and 285p from Jefferies, which helps explain why the average target sits at 285.6p.

That average target implies further growth of roughly 31.6% versus the current share price.

So what could go wrong?

Risks to consider

The risk is that Helios operates in markets where politics, regulation and currency moves can change quickly. Those issues can hit reported earnings, cash flow and investor sentiment even when underlying demand is fine.

The company is also spending heavily to expand, so execution matters more than it would for a slower-moving utility-style business.

My verdict

For me, Helios looks suitable to consider as a small allocation in a diversified portfolio rather than a core holding. Taking into account the regional risks, this could be one for investors who are happy to back growth with a bit of volatility.

If you believe Africa’s data demand will keep rising, the stock has a clear growth case, and the latest guidance upgrade strengthens that argument

Should you invest £5,000 in Helios Towers Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Helios Towers Plc made the list?

Mark Hartley does not hold any positions in the companies mentioned.

The post Up 85.2%, is this the most promising growth opportunity on the UK stock market right now? appeared first on The Twelfth Magpie.