Jet Energy: AGR recommends a long-term investment following the IPO
Investors Encouraged to Take a Long-Term View for Jet Energy’s IPO
In light of Jet Energy’s Initial Public Offering (IPO), Attijari Global Research (AGR) recommends that investors adopt an investment horizon exceeding two years. The organization highlights the company’s growth prospects and the potential of the renewable energy sector in Morocco while cautioning about short-term stock volatility risks.
An IPO to Accelerate Jet Energy’s Development
In its research report titled "Research Report – Equity," Attijari Global Research reviews the outlook for Jet Energy, a subsidiary of the publicly traded group Jet Contractors that specializes in energy solutions in Morocco.
The company’s IPO involves a capital increase executed through an Open Price Offer (OPO) mechanism. This marks a first for the Moroccan stock market since TotalEnergies Marketing Morocco went public in 2015.
The operation involves an amount between 328 and 375 million dirhams—a relatively modest capital increase compared to some previous transactions on the Casablanca Stock Exchange—but one that is expected to strengthen Jet Energy’s equity and support its development ambitions.
Renewable Energy: A Strategic Growth Driver
According to AGR, Jet Energy operates in a sector with significant long-term growth prospects, particularly driven by Morocco’s ambitions for energy transition and the development of renewable energy.
The company focuses on three main areas. Its core business lies in the engineering, procurement, and construction (EPC) of photovoltaic projects and energy storage solutions. It also operates in electrical installations and maintenance and operating works.
Through this IPO, Jet Energy aims to gain greater financial and operational autonomy to participate more effectively in large tenders.
So far, its dependency on its parent company, Jet Contractors, has been a limiting factor for its growth potential, according to AGR’s analysis. Strengthening its equity should thus enable Jet Energy to expedite its EPC activities and continue its vertical integration.
Revenue Expected to Rise by 21% Annually
Financial forecasts from Attijari Global Research indicate sustained growth prospects for the period from 2026 to 2030.
The organization anticipates an average annual revenue growth of 21% during this period, following a notable surge of 54% between 2023 and 2025.
This trajectory is expected to contribute to a doubling of the company’s profits, projected to rise from 93 million dirhams to 191 million dirhams by 2030.
However, in terms of dividend distribution, short-term prospects appear less attractive. The average yield is expected to hover around 3% during 2026-2027, which could deter investors looking for regular income.
Valuation Considered Reasonable Despite Volatility Risks
Regarding market valuation, AGR believes that Jet Energy’s multiples are generally reasonable in line with its Business Plan.
The average price-to-earnings (P/E) ratio is expected to fall between 12.4 to 14.2 times during the 2026-2029 period. For the research organization, this valuation level would partially offset the risks that investors may face in the medium term.
Nevertheless, the operation is likely to position Jet Energy among small-cap stocks, with an estimated market capitalization of 1.9 billion dirhams.
This setup exposes the stock to a higher volatility risk, particularly during the initial phases of its listing.
In this context, Attijari Global Research recommends that investors focus on a horizon longer than two years. This approach relies on the company’s growth prospects and anticipated development of the Moroccan renewable energy market rather than seeking short-term gains.
