Orange: Morgan Stanley upgrades stock
(CercleFinance.com) - On Tuesday Morgan Stanley upgraded its rating on the Orange stock from "underweight" to "equal weight", after the share's 26% decline since the beginning of the year.
While analysts warn that Q3 could still reserve some unpleasant surprises, with a deterioration of financial indicators in France, Spain and the Middle East/Africa (MEA), the broker points out that the French telecom operator is now in a position to monetise its infrastructure activities (telecom towers, fiber), and even its cyber security branch, based on interesting valuation multiples.
Morgan Stanley is taking advantage of this opportunity to raise its target price for the share from 11 euros to 11.5 euros, which gives it over 20% upside potential relative to its current price.
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