(News Bulletin 247) – Berenberg announced on Wednesday that it had reduced its price target on Orange, which it reduced from 11.4 to 11 euros one week before the publication of the telecom operator’s quarterly results.
According to the analyst, the European activities should be the main driver of the results in view of the solid performances recorded by the group in Spain and Poland.
This outlook leads it to post a forecast for earnings before interest, tax, depreciation and amortization and after rental (EBITDAaL) 2% higher than the consensus for the European scope.
Berenberg notes, however, that the strength of the region should be more than offset by less dynamic results from France, Africa and the Middle East, but also from professional services.
‘Orange’s investment case is solid, but we find it difficult to become more positive on the title as long as the core market of France continues to deteriorate,’ he concludes.
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