Orange: The Market Is Underestimating This European Telecom Giant (Rating Upgrade)

Summary Orange S.A. is upgraded to strong buy, reflecting a deep valuation discount despite robust operational momentum and improved guidance. H1 results showed 3.5% revenue growth, a 5% EBITDAaL increase to €6.1B, and strong FCF, with Africa & Middle East revenue up nearly 14%. 2026 guidance is raised: EBITDAaL growth is now >4% (from 3%), organic cash flow target is lifted to ~€4.3B, and medium-term leverage target remains ~2x. Intrinsic value is estimated well above the current price, with macro risks offset by a defensive profile and strong income potential. Jean-Luc Ichard/iStock Editorial via Getty Images Introduction In my previous Orange S.A. ( ORANY )( FNCTF ) analysis, I reiterated its Buy rating, highlighting the strong momentum in Africa and the Middle East while advancing synergies from the MasOrange merger even This article was written by IWA Research 3.63K Followers Follow I've been researching companies in-depth for over a decade, from commodities like oil, natural gas, gold and copper to tech like Google or Nokia and many emerging market stocks, which I believe could help me provide useful content for readers. After writing my own blog for about 3 years, I decided to switch to a value investing-focused YouTube channel, where I researched hundreds of different companies so far. I would say my favorite type of company to cover are metals and mining stocks, but I am comfortable with several other industries, such as consumer discretionary/staples, REITs and utilities. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ORANY over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.