The ‘Pain Is Largely Over’ for Orange, Goldman Says
2014-12-08 07:33:00.270 GMT
By Sam Chambers
Dec. 8 (Bloomberg) -- The drop in Orange’s earnings has
created a cost-cutting culture, with similar situations
producing large savings at BT and Telefonica, Goldman says.
* Goldman: ARPU is stabilizing and consensus upgrades are
likely to see shrs re-rate upward
* Sees 60% chance of French telco consolidation over next
2 years
* Upgrades stock to conviction buy from neutral, raises PT
by 51% to EU21.1 (43% upside)
* Upgrades stock to conviction buy from neutral, raises PT
by 51% to EU21.1 (43% upside)</li></ul>
* NOTE: On Friday, Orange shrs closed at their highest level
since June 2011; stock trades at 24% discount to other Stoxx
600 telcos on 12m forward EV/Ebitda
* Goldman also removes Iliad from its conviction buy list
(keeps at buy)
* Says co. still offers attractive exposure to potential
consolidation in France; now sees better investment
opportunities elsewhere in the sector
* Says co. still offers attractive exposure to potential
consolidation in France; now sees better investment
opportunities elsewhere in the sector</li></ul>
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To contact the reporter on this story:
Sam Chambers in London at +44-20-7673-2021 or
schambers7@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
2014-12-08 07:33:00.270 GMT
By Sam Chambers
Dec. 8 (Bloomberg) -- The drop in Orange’s earnings has
created a cost-cutting culture, with similar situations
producing large savings at BT and Telefonica, Goldman says.
* Goldman: ARPU is stabilizing and consensus upgrades are
likely to see shrs re-rate upward
* Sees 60% chance of French telco consolidation over next
2 years
* Upgrades stock to conviction buy from neutral, raises PT
by 51% to EU21.1 (43% upside)
* Upgrades stock to conviction buy from neutral, raises PT
by 51% to EU21.1 (43% upside)</li></ul>
* NOTE: On Friday, Orange shrs closed at their highest level
since June 2011; stock trades at 24% discount to other Stoxx
600 telcos on 12m forward EV/Ebitda
* Goldman also removes Iliad from its conviction buy list
(keeps at buy)
* Says co. still offers attractive exposure to potential
consolidation in France; now sees better investment
opportunities elsewhere in the sector
* Says co. still offers attractive exposure to potential
consolidation in France; now sees better investment
opportunities elsewhere in the sector</li></ul>
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Sam Chambers in London at +44-20-7673-2021 or
schambers7@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net