Maroc Telecom: AGR estimates a potential appreciation of the stock of 24%

Attijari Global Research (AGR) has revised upwards its price target for Maroc Telecom shares, setting it at 117 dirhams, which represents a potential appreciation of 24% by 2025.

This optimistic forecast is based on the operator’s solid operational performance, which confirms the resilience of its business model, despite an increasingly difficult regulatory and competitive context since 2019, according to the latest AGR report entitled “Maroc Telecom: resilience always pays off”.

The operator has managed to maintain a consolidated EBITDA margin of over 51% and a recurring profit capacity of 6 billion dirhams over the period 2019-2024. Furthermore, sector trends in Morocco remain positive, particularly thanks to the development of optical fiber and the imminent arrival of 5G, which should offset the decline in mobile revenues.

In Africa, Moov subsidiaries, which will represent more than 50% of revenues in 2024, are expected to show sustained growth, driven by strong demand for mobile data, fixed internet and mobile money. AGR also highlights Maroc Telecom’s ability to overcome external shocks while ensuring the distribution of dividends to its shareholders, thanks to its debt repayment capacity, cash generation and a constant investment effort.

According to AGR, Maroc Telecom stands out as the leading yield stock among large caps, with a recurring dividend yield (D/Y) of 6%, well ahead of the cement (3.8%), banking (3.5%), agri-food (3.4%) and energy (3%) sectors.

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