(News Bulletin 247) – Barclays raised its recommendation on Orange on Tuesday, raising it from ‘weight online’ to ‘overweight’ with a price target raised from 12 to 13.5 euros.
In a sector note, the design office justifies its decision by the continuous improvement in the prices of offers in France, as illustrated by the recent increases announced by Bouygues and SFR.
But with nearly 65% ​​of its intrinsic value drawn from France, it is Orange that is most likely to benefit from this buoyant pricing environment, believes Barclays.
The analyst also expects the profitability of the telecom operator to continue its upward trajectory, with a return on invested capital (ROCE) rising from 5.7% in 2021 to 6.1% in 2022.
By 2025, this should be around 7%, according to Barclays projections.
Finally, he underlines, the title displays an attractive valuation, with a discount vis-Ã -vis its peers in terms of multiples of cash flow available to shareholders (EFCF).
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