France Telecom "add"

06/25/07 - Dexia Securities

LONDON, June 25 (newratings.com) - Analyst Rob Goyens of Dexia Securities maintains his "add" rating on France Telecom (FTE). The target price is set to €23.9.

In a research note published this morning, the analyst mentions that the French government intends to sell going forward 5%-7% of its current 32.4% stake in France Telecom. The timing of the sale is surprising, since the sale was expected to take place in 2H07, Dexia Securities adds. Once the government placement process is over, the market is expected to focus on France Telecom’s fundamentals, such as the dividend yield, attractive valuation, continued portfolio reshuffling and growing investor confidence in the company’s stock, the analyst says.