Orange Earnings: We Like How Orange Is Holding Up; Stable Q2 With Strong Growth in Europe and Africa

Orange continues delivering through 2023 and reached a 2.6% organic growth in revenue and a 1.0% organic growth in EBITDA after leases, or EBITDAaL, in the second quarter. Performance during the first half of the year is aligned with our forecasts and we believe Orange should not have trouble reaching its conservative guidance of slight EBITDAaL growth for the year. We like how Orange is performing during 2023, managing to defend its profits in a tough environment coupled with reduced capital intensity until 2025 as the bulk of fiber-to-the-home, or FTTH, investments in France is already done. We are maintaining our EUR 13.40 fair value estimate and see the shares undervalued at this point.