Orange Belgium to cut costs in an "attractive market", HSBC ups to buy

Orange Belgium NV

22/10/2021 10:45

** HSBC ups telecoms operator Orange Belgium  OBEL.BR  to
"buy" from "hold", citing strong Q3 results and commitment to
further cut costs
    ** The operator published robust Q3 results with EBITDAaL up
8.1% yoy at 96.7 million euros, and now expects to slightly
exceed its full-year EBITDA guidance of EUR 320-340
mln urn:newsml:reuters.com:*:nFWN2RG1U6
    ** HSBC increases operational forecasts after strong Q3 and
sees the company's cost reduction plan, which should be
presented in early 2022, as a positive 
    ** Another positive for Orange is the market structure in
Belgium, which HSBC calls "attractive" - with players relying on
product innovation, rather than price completion
    ** "We are confident that the company has the right
portfolio of products and price positioning to keep growing its
subscale broadband market share (8%)," HSBC said  
    ** In HSBC's view, the entrance of a fourth player on the
Belgian telecom market, the auction for which is expected in
spring next year, is the company's main obstacle  urn:newsml:reuters.com:*:nL3N2NE3EW
    ** HSBC ups it target price for the stock, which 17 analysts
rate "buy"​ and 13 rate "hold", to 23 euros from 22 euros

 (Reporting by Lucinda Langlands-Perry)
 ((Lucinda.langlands-perry@thomsonreuters.com))