The good...and the mixed

Research evidence excerpt

The good...and the mixed

Equity Research

European Telecom Services

29 July 2026

Orange

Orange published solid 2Q26 results and raised guidance on

EBITDA (in line with consensus) and FCF (above consensus).

Orange is progressing along the regulatory process for French ORAN.PA/ORA FP EQUAL WEIGHT Unchanged

M&A, but approval is unlikely before end of 2027. We edge European Telecom Services NEUTRAL

estimates higher but keep our PT and EW unchanged. Unchanged

Price Target EUR 16.50

Unchanged

Orange published solid 2Q26 results that came above expectations due to Africa & ME, as

Price (28-Jul-26) EUR 17.18well as Europe. France was broadly in line with expectations and its previous

Potential Upside/Downside -3.9%trajectory. The company raised guidance on group's EBITDA (in line with consensus) and Source: Bloomberg, Barclays Research

FCF (above consensus) driven by Africa & ME/Europe offsetting soft trends in Spain. We

edge up our estimates. A key driver for further value creation is approval of the French

Market Cap (EUR mn) 45686

consolidation with limited remedies. Whilst we see this as likely, the price offered by the

Shares Outstanding (mn) 2660.06buyers captures, in our view, most of the opex/capex synergies, so market rationalisation

Free Float (%) 66.55would be needed to create meaningful value. With the deal unlikely to close before the end

52 Wk Avg Daily Volume (mn) 4.4of 2027: the head of French anti-trust indicated an 18 month review from the pre-

Dividend Yield (%) 4.37notification and this is consistent with Orange management's view. So this potential

Return on Equity TTM (%) N/Aupside is distant while the French political/macro environment remain uncertain. We

Current BVPS (EUR) N/Aremain EW with a €16.5 PT. Source: Bloomberg

2Q26 results review.