Orange share, leading the CAC 40, remains below its moving averages

Two analyst revisions on the same day support Orange's rebound

Grupo Santander upgraded its opinion on Orange this Thursday from "market perform" to "outperform", while raising its price target from €18.40 to €19.40. On the same day, BNP Paribas Exane maintained its opinion at "outperform" but slightly lowered its target, from €21.00 to €20.00. These two targets are respectively 26% and 30% above the current price of €15.42, indicating significant upside potential according to the analyst consensus.

The stock gained 1.31% during the session, at €15.42, and topped the CAC 40, in an index that was virtually stable at +0.13%. This rebound, however, is not enough to erase the 6.32% decline recorded over the past month.

A stock below its three moving averages in a context of monitored rates and debt

From a technical standpoint, the Orange price is evolving below its three moving averages: below the 20-day MA at €15.75 (gap of -2.13%), below the 50-day MA at €16.07 (-4.08%) and below the 200-day MA at €16.43 (-6.18%). The RSI at 37 reflects persistent selling pressure over several weeks, without yet reaching a clear oversold zone. The support level at €15.10 remains the key lower reference to monitor, while resistance at €17.40 corresponds to one of the first obstacles above the current moving averages.

This medium-term decline is occurring in a tight market environment: the ECB holds its monetary policy meeting this Thursday, with a rate increase of nearly 2.25% to 2.50% already priced in by markets. For a highly indebted group like Orange and a long-term financing consumer, this environment of elevated rates is a structural variable being monitored. The group moreover placed on September 8th a bond issue of €4.1 billion in four tranches, intended to cover its general financing needs.