CMGP: CFG Bank recommends buying, impressed by the group's recent acquisitions

CMGP Group is pursuing its external growth strategy in 2025, in line with commitments made during its IPO. The company is focusing on two key operations: increasing its stake in Agrosem to 70% and acquiring 92.5% of CPCM, with plans to eventually own 100%. The increased stake in Agrosem will provide CMGP Group access to a broad and diverse client and supplier portfolio, strengthening its market share in the seed sector. Meanwhile, the acquisition of CPCM is expected to consolidate CMGP Group's position in phytogenic products and water treatment, while also expanding its activities into promising industrial markets and diversifying its overall client portfolio. Both operations are anticipated to enhance the Group's operational margins. Analysts at CFG Bank note that these acquisitions represent significant growth opportunities, alongside the Group's efforts in organic growth through an enriched solution offering and the modernization and expansion of its commercial, industrial, and logistical infrastructures. As a result, CMGP Group is projected to have strong growth prospects in the coming years. Considering the historical scope and the integration of Agrosem (starting in 2025) and CPCM (starting in 2026), analysts estimate that the consolidated revenue of CMGP Group will grow at a CAGR of 13.1% from 2025 to 2030, reaching 4,630 MDH. Ultimately, the net profit should show an average annual growth of 17.8% during the forecast period, benefiting from increased operational margins and a controlled level of debt, reaching 448 MDH by 2030. In this context, the valuation model suggests a target price of 439 DH per share, compared to the current stock price of 376 DH. CFG Bank thus recommends buying CMGP Group shares, considering a growth potential of 16.9%.