Dear readers ;
The recent refined sugar exports figures published by the foreign exchange office (Office des Changes) led us to revise our Cosumar Group’s growth forecasts for FY 2016.
Under these conditions, Cosumar Group’s profitability for FY 2016 would be around MAD 1,000 Mn, a record level for the sugar operator. On the basis of a stable payout policy, the aggregate DPS would amount to MAD 19.7, of which MAD 3.0 related to the payout of the merger premium following the absorption of the Group of its subsidiary Sucrafor.
In the end, we reiterate our BUY recommendation on Cosumar stock with a target price of MAD 360 offering an upside potential of 32.0% over the medium term.