Orange Stock: Up 1.55% and Leads the CAC 40 Following the SFR Agreement
The telecom operator stands out at mid-session, going against a downward trending Parisian market. The stock benefits from the memorandum of understanding sealed with Bouygues Telecom and Free to acquire SFR's assets, as well as from two target price upgrades published today.
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.
