Orange: Oddo BHF downgrades Buy rating

(CercleFinance.com) - After Orange's CMD that was largely frowned on by the market (share down 4.
7% on the same day, slipping a further 1% the next day), Oddo BHF has downgraded its Buy rating on the Orange share, now adopting a neutral stance.
Orange should stay in its (trading) range, the broker says in a note, which has cut its target price from 16 euros to 14.5 euros.

In essence, analysts deem that the prospect of a stable adjusted EBITDA margin - expected next year - is disappointing. They believe that this reflects weaker organic growth than what had been expected to date, a sign that Orange is not benefiting from the recovery in France, Oddo BHF laments.

In addition, Orange's success in fiber optics in France now seems to be a thing of the past, and it is now no longer winning market share. In addition, Capex is disappointing.



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