Berenberg: Orange Poised for Cash Flow Growth Amid New Wave of French Consolidation

05:55 AM EDT, 10/02/2026 (MT Newswires) -- Orange (ORA.PA) is expected to see an increase in cash flows amid a new wave of consolidation in its home market of France, Berenberg said in a telecommunications sector-focused report published Thursday. "France is the latest market to consolidate. Savings will take time but while we wait, Spanish cash flow grows. We estimate that from 2028, French consolidation could add 13% accretion to cash flows with a low risk of remedies. On our estimates, Orange shares offer nearly 40% upside, a 9% cash yield rising to near-15% and a 5% and growing dividend," the research firm wrote, noting the 2024 merger of Orange Spain and MásMóvil to form MasOrange. "Most of [Orange's] top-line growth comes from Africa and the Middle East; however, cash flow growth is set to come from the consolidation of Spain and possibly from market repair in France, if consolidation is successful." Analysts also anticipate a stabilization in absolute average revenue per user in the second half after "encouraging" market trends seen in the French telecommunications group's second-quarter results. Meanwhile, "small" forecast adjustments were made on the back of higher Africa & Middle East and European growth expectations for the latter half of 2026. The stock's buy rating and price target of 20 euros were left unchanged, with Orange among Berenberg's top picks in the sector.