Eutelsat: Deutsche Bank reduces target price

(CercleFinance.com) - Deutsche Bank announced on Wednesday that it had lowered its price target for Eutelsat shares from E3.
1 to E3, concerned about the repercussions of the group's merger with OneWeb.

The analyst believes that the satellite operator's growth will continue to be penalised by the delays accumulated by OneWeb, which should lead to no growth in 2025, a prospect he considers disappointing.

At the time the deal was announced, Eutelsat estimated that OneWeb alone would generate revenues of E150m to E250m in FY 2023/2024, rising to E400m in 2024/2025.

According to its calculations, OneWeb generated revenues of just E67m in the past financial year, compared with E50m a year earlier.

In view of its concerns about the group's indebtedness and the current state of its order book, Deutsche explains that it prefers to maintain a 'sell' recommendation on the stock.


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