Orange’s Ambition To Increase Dividend to EUR 0.75 in 2025 From EUR 0.70 Is Achievable

No-moat Orange's fourth-quarter and annual results were aligned with our forecasts, with revenue and EBITDA after leases coming in at EUR 43.5 billion and EUR 13.0 billion respectively, 0.6% and 2.5% organic growth. For 2023, Orange has guided for slight growth in EBITDAaL, a significant decrease in capital expenditures, and an increase in its dividend floor to EUR 0.72 from EUR 0.70. Orange also said it intends to raise its dividend floor to EUR 0.75 by 2025, with this news resulting in the stock being up almost 5% at the time of the writing. We maintain our EUR 13.40 fair value estimate.