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Investing.com - Goldman Sachs has upgraded Orange SA (OTC:ORANY) (EPA:ORA) (NYSE:ORAN) from Sell to Neutral, significantly raising its price target to EUR15.40 from EUR8.80.
The upgrade reflects Goldman Sachs’ assessment that "increasing inorganic upside potential" is offsetting Orange’s "weak organic growth and returns." The firm’s analysis indicates potential 30% equity upside from market repair benefits that could result from French in-market operator consolidation.
Goldman Sachs noted that press speculation about market consolidation has increased, and Orange shares already reflect approximately 50% probability of consolidation. The firm also sees additional upside potential from possible mergers and acquisitions in the Spanish telecommunications sector.
The investment bank acknowledged its previous Sell thesis was "wrong in 2025," as it "failed to reflect growing expectations for inorganic upside." Goldman Sachs’ original negative outlook was based on Orange’s limited scope for organic growth and returns improvement.
The new EUR15.40 target price represents 16% upside potential from current levels, capturing the potential benefits from market consolidation and M&A activities, according to Goldman Sachs.
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