Bear Stearns Initiates Coverage On Orange -ORA.PA- With a Neutral Rating.Business Editors LONDON--(BUSINESS WIRE)--April 26, 2001 Analyst Fanos Hira Warns Challenges Face The Third Largest European Cellular Operator Bear Stearns European Wireless Analyst and Senior Managing Director, Fanos Hira initiated coverage today on Orange (ORA ora (o´rah) pl. o´rae [L.] an edge or margin. ora serra´ta re´tinae the zigzag margin of the retina of the eye. .PA) with a neutral rating. Despite the company's development into a leading European cellular operator, Hira believes Orange faces many challenges that could hamper its stock price moving forward. "Profitability is the key," said Hira. "They are growing at a strong rate and doing a number of things right, but it looks like it will be very challenging for them to vastly improve their margins in the near-term." The Bear Stearns analyst expects that over the next three years revenues and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become will increase by 17.2% and 48.7% respectively, although he does not expect pre-tax free cashflow break-even until 2002. Hira has placed a one-year price target of Euro12.27 on the shares. To learn more about initiation and to view the full company note, investors and the media may contact Russell Sherman in Bear Stearns' Corporate Communications Department in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . Mr. Hira may be reached at Bear, Stearns International Limited in London at +44 20 7516 6791. Bear, Stearns International Limited (BSIL BSIL Blue Screen Infinite Loop ) is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of The Bear Stearns Companies Inc. BSIL currently employs more than 800 staff in London who serve corporations, institutions, partnerships and governmental entities in the United Kingdom, Europe and the Middle East. BSIL's capabilities include investment banking, institutional equities and fixed income sales, trading and research, derivatives, financial futures financial futures Obligations to buy or sell particular positions in financial instruments. The features of financial futures are identical to those of any futures contract except that the asset for delivery is of a financial nature. , foreign exchange and global clearing. |
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