Orange Stock: Up 1.55% and Leads the CAC 40 Following the SFR Agreement

The stock benefits from the agreement signed with Bouygues Telecom and Free and from target price upgrades

Orange's stock rises 1.55% to €17.7050 at mid-session, leading the CAC 40 which is down by 0.46%. The stock benefits from the announcement of the memorandum of understanding signed on June 5th with Bouygues Telecom and Free to acquire most of the assets of Altice France-SFR, valued at €20.35 billion excluding XP Fibre, UltraEdge, and overseas activities. Two brokerage houses have raised their target prices today. JP Morgan has increased its target from €21.00 to €21.80 while maintaining its overweight recommendation, whereas Intesa Sanpaolo has initiated or reiterated a buy rating with a target set at €19.20. Based on the current price, JP Morgan's target implies a potential upside of about 23%, and Intesa Sanpaolo's target nearly 8.5%. The stock's annual performance remains strong, at nearly 40%.

The rebound occurs at the support level of €17.39, already tested during the session

Today's movement is part of a consolidation phase after reaching a five-year high in mid-May at €18.74. During the session, the stock briefly dipped below its support level at €17.39, reaching a low of €17.37, before climbing back above it. The price is currently below the MM20 (€18.12, a gap of -2.29%) and the MM50 (€17.86), but maintains a comfortable cushion above the MM200 (€15.58, a gap of +13.64%). The RSI at 39 indicates the exhaustion of recent sessions without entering an oversold zone. The next resistance level is at €18.72, which is the level of the multi-year peak. For the week, the stock is still down by 1.28%, despite today's rebound.