Orange Shares Surge 3.97% at Close Amid Altice Negotiations
The stock of the historic French operator saw a significant increase on Thursday, January 22, closing at 14.94 euros. This rise follows the official confirmation of discussions between a consortium comprising Orange, Bouygues Telecom, and Free-Group iliad for the potential acquisition of a large portion of Altice France's telecom activities. Meanwhile, analysts have recently adjusted their recommendations on the stock.
Consortium Discussions and Due Diligence
The consortium consisting of three operators, Bouygues Telecom, Free-Group iliad, and Orange, has confirmed the existence of discussions with Altice Group regarding the potential acquisition of a significant part of Altice's telecommunications activities in France. Due diligence processes have been initiated since early January 2026, marking a new phase after the rejection of an initial proposal made last October by Altice France. The legal and financial conditions of the transaction have not yet been agreed upon, according to the joint statement from the three groups. The consortium has indicated to SFR's owner, Patrick Drahi, that they are ready to raise their offer to around 20 billion euros to acquire his operator, as reported by several specialized media. There is no certainty that this process will result in an agreement, which must in any case be subject to the approval of the governance bodies of the concerned companies. This operation comes in a context where the three operators express their desire to consolidate the French market around three major players, in a sector characterized by high competitive intensity and increasing investments in network infrastructure.
Analyst Perspectives and Market Trends
Analysts have recently revised their outlook on Orange. Morgan Stanley raised its price target from 14.00 to 15.50 euros on January 16, accompanied by a market-weight recommendation, while Deutsche Bank increased its target from 15.50 to 16.50 euros while maintaining its buy recommendation. These new targets suggest a potential appreciation of 3.7% and 10.4% respectively compared to the closing price of the day. Citi also adopted a favorable stance in early January by upgrading its recommendation to buy. Technically, the stock is now trading above its 50-day (14.10 euros) and 200-day (13.53 euros) moving averages, confirming a medium-term bullish trend. The RSI indicator is at 54, a neutral zone that indicates neither overbought nor oversold conditions, leaving room for progression. The recent crossing of the resistance threshold at 14.81 euros paves the way for new technical levels for the stock, which shows an outstanding annual performance of 44.75% and a three-month increase of 5.81%. The monthly volatility contained at 5.71% demonstrates a relatively stable course in a turbulent market context.
