Insights

With a correction of -5.8% since the beginning of 2020 against -17.3% for the MASI index, TAQA Morocco confirms its status as a defensive stock offering a real investment alternative for risk averse investors.

After a slight increase of 0.5% in Q1-20, the aggregate revenue of listed companies at the end of the 2nd quarter stood at MAD 55.7 Bn, down -10.5%. In more detail, 54 listed companies reported declining revenue in Q2-20 against 36 in the pre-vious quarter. [...]

The diversification of Mutandis’s business portfolio strengthens the resilience of its results in 2020. To this end, the stock rate should benefit from a natural drop in its cost of capital on the stock market. According to our own valuation, the share price offers a potential increase of 33%.

The half-year results of Label Vie in H1-20 confirm the positive dynamics of the modern distribution sector in Morocco. Thanks to double-digit profit growth on MT, we believe the share price offers an attractive margin of appreciation of 28%.

The consumer credit sector is deeply affected by the Covid-19 crisis. However, we believe that the correction of the Eqdom on the stock market by -38% since January 2020 is disproportionate compared to the potential for a recovery in its fundamentals by 2022.

The Q1-20 was marked by the worldwide spread of the Covid-19 pandemic. An unprecedented health crisis which has led Morocco, as many countries, to opt for a strict lockdown of population and shutdown of several economic activities.

Today, two major questions are plaguing the financial community in Morocco. On the one hand, is the current health crisis likely to continue? On the other hand, what would be its macro and micro-economic impacts?