Berenberg announced on Wednesday that it has lowered its price target for Orange from 11.4 to 11 euros, a week ahead of the telecom operator's quarterly earnings release.

According to the analyst, European activities should be the main earnings driver, given the Group's solid performances in Spain and Poland.

As a result, Berenberg is forecasting earnings before interest, taxes, depreciation and amortization and after rent (EBITDAaL) for Europe to be 2% above consensus.

Berenberg notes, however, that the region's strength should be more than offset by less dynamic results from France, Africa and the Middle East, as well as professional services.

'Orange's investment case is solid, but we find it difficult to become more positive on the stock as long as the core market of France continues to deteriorate', he concludes.

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