Orange: BarCap still a buyer; targets 19 euros
(CercleFinance.com) - Following meetings with different French telecom operators, Barclays Capital (BarCap) analysts have confirmed their buy rating ("outperform") on the Orange share, as well as their target price of 19 euros.
According to analysts, in France 2018 should be marked by the following phenomena for French "telcos". First, there will be the renewal of 3G frequencies in the next few weeks, which is set to go according to plan, benefiting cash levels. Then, this year will see fiber optics stand out. In addition, the risk associated with acquiring broadcasting rights of football matches has fallen. And this is the case, even though, until the completion of Altice's reorganisation, mergers and acquisitions should hardly be talked about.
Orange seems well positioned to benefit from these themes in 2018, as it is focusing on convergence (between fixed and mobile, ed.) customers and focuses on value above volumes, argues BarCap. All these factors support the forecasts for growth in the group's cash flow and dividends: after 0.60 euro in 2016, Orange's dividend is expected to reach 0.65 euro in 2017, followed by 0.68 euro in 2018.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
According to analysts, in France 2018 should be marked by the following phenomena for French "telcos". First, there will be the renewal of 3G frequencies in the next few weeks, which is set to go according to plan, benefiting cash levels. Then, this year will see fiber optics stand out. In addition, the risk associated with acquiring broadcasting rights of football matches has fallen. And this is the case, even though, until the completion of Altice's reorganisation, mergers and acquisitions should hardly be talked about.
Orange seems well positioned to benefit from these themes in 2018, as it is focusing on convergence (between fixed and mobile, ed.) customers and focuses on value above volumes, argues BarCap. All these factors support the forecasts for growth in the group's cash flow and dividends: after 0.60 euro in 2016, Orange's dividend is expected to reach 0.65 euro in 2017, followed by 0.68 euro in 2018.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.