Ittissalat Al Maghrib (IAM) headquarters in Rabat. Credit: Mustapha Razi / Le Desk
Attijari Global Research (AGR) has revised its valuation of the target price of Maroc Telecom shares bringing it to 117 dirhams, offering a potential appreciation of 24% by 2025.
This positive outlook on the future development of the stock on the stock market is based in particular on the operational achievements of the operator confirming the resilience of its business model, despite the visible tightening of the regulatory and competitive contexts observed since 2019, explains AGR in its recent “Research Report – Equity” entitled “Maroc Telecom: resilience always pays off”.
Indeed, the operator manages to defend a consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) margin greater than 51% and a recurring profit capacity of 6 billion dirhams. during the period 2019-2024, reports the same source.
In addition, sectoral trends are reassuring in Morocco, especially with the good performance of optical fiber and the arrival of 5G which should counterbalance the downward trend in Mobile turnover.
In Africa, Moov subsidiaries whose revenue contribution exceeds 50% in 2024, should display a more attractive growth profile, driven by the strong dynamics of mobile data, fixed internet and mobile money.
Furthermore, AGR notes that Maroc Telecom’s proven ability to overcome exogenous shocks while ensuring the remuneration of its shareholders is reflected through its debt repayment capacity, its capacity to generate cash as well as its investment effort. supported.
From the fourth quarter of 2024, Maroc Telecom shares should benefit from an improvement in its risk profile through better investor visibility on the future evolution of results and the dividend. In this perspective, AGR experts expect an increase in the valuation levels of the stock in order to ultimately adjust with the expected normalization of its dividend.
In another wake, Bank Al-Maghrib’s turnaround towards an accommodative monetary policy in 2024 should arouse investor interest in yield stocks, according to the report.
In this regard, AGR analysts note that taking into account the surge in market valuation levels, Maroc Telecom becomes the 1st yield stock among large capitalizations with a recurring D/Y (Dividend Yield). by 6%, far ahead of the cement (3.8%), banking (3.5%), agri-food (3.4%) and energy (3%) sectors.
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