Orange Stock Climbs at Close, Boosted by Two Target Upgrades
The French telecom operator's stock ended the session on Friday, January 16, up by 1.1%, supported by favorable revisions from Deutsche Bank and Morgan Stanley, as the market eagerly awaits the upcoming investor day scheduled for February.
Target Price Upgrades by Deutsche Bank and Morgan Stanley
Deutsche Bank and Morgan Stanley simultaneously raised their price targets on Orange this Friday, to 16.50 euros and 15.50 euros respectively. The stock closed at 14.77 euros, marking a 1.1% increase from the previous day, amid moderate trading volumes. The German bank highlighted that the group will hold an investor day on February 19, which could be an opportunity to detail new medium-term growth targets. These adjustments follow Citi's initiation of a 'buy' recommendation on January 13 with a target of 15.80 euros, and a revision by UBS at the beginning of January to 16.20 euros. These revisions suggest a potential appreciation of between 6.9% and 11.7% from the current price. Technically, the stock remains about 9.6% above its 200-day moving average of 13.48 euros, indicating a bullish momentum established over several weeks. The RSI at 64 points indicates that the stock remains in a favorable zone without being overbought, leaving room for further ascent.
Orange's Positive Momentum
Orange's progress is part of a broader positive dynamic, with the stock having risen by 5.4% over three months and 46.6% over a year. This performance is notably due to the prospects offered by the issuance of a $6 billion bond in early January in five tranches, the funds from which could be used to refinance debt related to MasOrange. The telecom operator is distinguished by its low volatility over one month of 5.28% and a beta of 0.12, characteristics that make it a safe haven for investors during periods of uncertainty. The breaking of the resistance threshold at 14.62 euros now paves the way for new highs. The stock is also trading above its upper Bollinger band at 14.68 euros, confirming a well-established bullish trend. Investors are now awaiting the publication of the 2025 annual results on February 18, which will occur the day before the investor day, to confirm the group's operational trajectory in a context of transformation of the European telecom sector.
