UBS reaffirms its 'buy' recommendation on Orange, while reducing its target price from 12.7 to 12.1 euros, a new target that leaves 17% upside potential for the shares of the incumbent French telecoms operator.

'Orange offers visibility on FCF growth, low debt and M&A optionality at a price below the sector. The stability of EBITDAaL France from the first half of 2024 onwards is a key catalyst', argues the broker.

UBS also points out that, like other companies in the sector, Orange has positioned itself to benefit from ESG trends, mentioning for example its initiatives to increase network efficiency and switch to renewable energy sources.

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