M.S.IN recommends strengthening Attijariwafa Bank in portfolios despite short-term geopolitical concerns

M.S.IN, a subsidiary of Crédit Agricole, has upgraded its recommendation for Attijariwafa Bank shares from "hold" to "strengthen" in portfolios. Analysts value the stock at 787 dirhams per share, indicating a potential upside of 12% compared to its closing price on April 9, 2026. This revision occurs amidst a stock correction, influenced by the conflict in the Middle East, and represents a decrease from the previous valuation of 823 dirhams. According to M.S.IN, the banking sector experienced more favorable conditions in 2024 and 2025, following high inflation and monetary policy tightening in 2022 and 2023. Controlled inflation allowed Bank Al-Maghrib to ease its monetary policy, boosting financing activity and bank dynamism. However, short-term prospects for 2026 might be affected by geopolitical tensions in the Middle East, potentially leading to increased oil and gas prices, renewed inflationary pressures, and rising interest rates. Despite these uncertainties, M.S.IN forecasts positive growth for the banking sector in the medium term. Projections show a compound annual growth rate CAGR of 4.4% for net banking income and 6.17% for group share of net income between 2026e and 2030p. This growth is expected to be driven by increased credit outstanding, linked to public infrastructure investments as Morocco addresses climate change and prepares for international sporting events by 2030. The analysts' scenario is based on several key assumptions: an improved cost of risk in th