Morocco’s telecommunication giant Maroc Telecom (IAM) is poised for a 24% in stock prices by 2025, according to a recent report from Attijari Global Research (AGR), a market research firm.
The bullish forecast is underpinned by the operator’s solid operational performance, which has demonstrated resilience despite increasing regulatory and competitive pressures since 2019, AGR maintains.
In its report, AGR spotlights the company’s ability to sustain a consolidated EBITDA margin exceeding 51%, along with a robust recurring profit-generating capacity of MAD 6 billion (USD 621 million) from 2019 to 2024.
Sector trends in Morocco remain optimistic and favorable for IAM, particularly with the growth of fiber optics and the recent rollout of 5G technology, which are expected to mitigate declines in mobile revenue.
In the African market, subsidiaries under the IAM’s Moov contribute over 50% to the company’s revenues in 2024. The African branches are anticipated to deliver a more robust growth profile, fueled by the rising demand for mobile data, fixed internet, and mobile money services.
AGR equally points out Maroc Telecom’s ability to weather external shocks while consistently rewarding its shareholders. This capability is evidenced by its strong debt repayment ability, solid cash generation, and ongoing investment in growth initiatives.
Looking ahead to the fourth quarter of 2024, AGR expects an enhanced risk profile for Maroc Telecom, as improved visibility into future earnings and dividends may lead to higher valuation levels.
Analysts anticipate this will align with the expected normalization of the company’s dividend policies, further boosting investor sentiment.
In addition, Bank Al-Maghrib’s recent shift towards a more accommodating monetary policy is likely to heighten investor interest in dividend-yielding stocks.
Given the soaring market valuations, Maroc Telecom is positioned as a leader in this segment, boasting a recurring Dividend Yield (D/Y) of 6%, significantly outpacing other major sectors such as cement (3.8%), banking (3.5%), agri-food (3.4%), and energy (3%).