Attijari Global Research (AGR) has raised its target price for Maroc Telecom’s stock to 117 dirhams, forecasting a potential 24% growth by 2025. This optimistic outlook is based on the company’s demonstrated resilience amid an increasingly stringent regulatory and competitive landscape since 2019.
Despite these challenges, Maroc Telecom has managed to maintain a consolidated EBITDA margin exceeding 51% and has consistently generated recurring profits of 6 billion dirhams from 2019 to 2024. AGR also expects Maroc Telecom’s risk profile to improve by the end of 2024, bolstered by a more accommodative monetary policy from Bank Al-Maghrib and an attractive dividend yield of 6%, notably higher than other major sectors.
On the domestic front, the growth of fiber-optic services and the imminent introduction of 5G technology are anticipated to offset the projected decline in mobile revenue, further strengthening the financial stability of the telecom operator.
In conclusion, AGR recommends buying Maroc Telecom shares, highlighting the company’s ability to consistently generate profits and offer attractive returns to shareholders, even in a challenging environment.
