ODDO BHF European Large Caps List: an exit for Orange

Today, we are removing Orange from our list of recommended European large caps. The stock has risen 22% since its inclusion on 27 February (+4% dividend to be added). Our analyst Stéphane Beyazian is downgrading the stock to Neutral (from Outperform). Beyond factors specific to Orange, we believe this is an appropriate exit point ahead of the likely return of volatility in French equities with the imminent announcement by the Lecornu government and the upcoming budget discussions. Our list of recommended European large caps has posted a performance of 22.3% since 12 December 2024, i.e. an outperformance of 11.8% vs its benchmark, the Stoxx 600, which has only risen 10.5% since that date.