(Ecofin Agency) - The independent analysis firm Alpha Mena has pegged a sell rating on BMCE Bank of Africa on the belief that it could record a significant loss in the future.
The analysis firm explains that between 2019 and 2021, the scenario according to which BMCE Bank of Africa is unable to boost revenues and reduce expenses would continue. The consequence would be a decreasing net margin.
For the time being, the Casablanca stock exchange seems unconcerned with that rating. BMCE Bank has recorded 4 highs in the last five trading days on this stock. It even reached its higher high since November 2018.
Let’s note that it all depends on investors’ strategy (whether they are short, medium or long term investors). Alpha Mena’s analysis seems to have been completed before BMCE Bank’s motherhouse Bank of Africa announced its plan to raise additional funding with an undisclosed foreign investor entering into its capital.
In addition, taking some indicators into account, it can be said that the group is doing better than most of the groups operating in this sector in the Moroccan market. In the past five years, however, some of its indicators have been worse than the average, according to data compiled by Ecofin Agency.