Orange upgraded to Buy from Neutral at Citi

Citi analyst Georgios Ierodiaconou upgraded Orange to Buy from Neutral with a EUR 11.30 price target. The analyst expects Orange to report “mixed results” next week as pressure from low market growth in broadband and churn from the tariff increases weigh on key performance indicators. The firm is also concerned about the mid-term implications from any Spanish consolidation efforts. However, Orange is well placed in terms of headline leverage, financial momentum in the second half of 2023 and “high and growing” dividend support, the analyst tells investors in a research note. What has been added to the list is the prospect of further developments in the French market, as one of Orange’s main competitors is seeing yields rise across its structures, says Citi.