UPDATE 2-Moroccan conglomerate ONA says 2007 net up 80 pct

(Adds analyst comment, background)

RABAT, March 28 (Reuters) - ONA (ONA.CS), a diversified conglomerate that dominates Morocco's private sector, reported an 80 percent increase in 2007 net profit on Friday, boosted by an insurance asset sale and strong retail and banking results.

Net income rose to 1.728 billion dirhams ($237.3 million) from 959 million dirhams a year earlier, the company said in a statement. Heavy start-up costs for a telecoms venture pushed operating profit down 29 percent to 1.29 billion euros.

Turnover rose 15 percent to 32.8 billion dirhams.

ONA sold a stake in an insurance venture with France's Axa (AXAF.PA) last year. Telecoms arm Wana, which rivals dominant player Maroc Telecom (IAM.CS), aims to break even in 2010.

"In 2008, growth and results should be in line with the ambitions for the 2007-2009 plan," Chairman Saad Bendidi said in a statement.

The company said a year ago it expected its net profit to double to over 2 billion dirhams between 2006 and 2009. It also foresees turnover exceeding 40 billion dirhams next year.

ONA, which is controlled by the Moroccan royal family, dominates some of the kingdom's most lucrative sectors, including banking, mining, food retail and agribusiness.

Its sugar processing arm Cosumar reported on Friday net profit more than doubled to 429.2 million dirhams from 164.5 million.

ONA shares closed at 1,889 dirhams in Casablanca on Thursday, bringing their gain this year to 19 percent. The stock had not traded by 1025 GMT on Friday.

"For once the numbers are really good," said Mohamed Essakalli, head of sales at CFG Group brokerage. "We are positive about the stock for next year too."

He said CFG had estimated fair value for ONA stock at 2,300 dirhams per share and would probably increase that again. (Reporting by Tom Pfeiffer, editing by Will Waterman and Sue Thomas)