Eutelsat Shares Bounce Back 5.8% Mid-Session After Softbank-Related Drop

Previous Day's Sharp Decline

The stock had plunged nearly 8% on December 3rd, under pressure from Softbank's divestiture of 36 million subscription rights, equivalent to about 26 million shares, nearly half of its current stake. At 2.08 euros, the satellite operator remains under medium-term pressure, with a weekly performance down by 1.89% and a three-month decline of 6.65%. Over the year, the stock has fallen by 4.24%, while the CAC 40 has gained 11.89%. Trading volumes remain moderate, with 0.25% of the capital traded during the session. This movement is part of a total capital raising of approximately 1.5 billion euros, including a reserved increase of 828 million euros completed on November 21st and an operation with maintenance of preferential subscription rights of about 670 million euros. The subscription rights are valid until December 9th, 2025, with a subscription price set at 1.35 euros per new share.

Technical Vulnerability Zone

Technically, the stock is in a zone of high vulnerability. The 12-point Relative Strength Index (RSI) indicates an extreme oversold condition, signaling a stock neglected by investors and technically ripe for a technical rebound like the one observed this Thursday. This setup helps understand the bullish reaction of the session, although caution is still advised. The immediate support threshold is at 1.97 euros, a level tested the previous day, while major resistance stands at 3.73 euros, well above the current price. The MACD, a momentum indicator, remains negatively oriented with a line at -0.38 and a histogram at -0.10, confirming the lack of structural bullish momentum. The 50-day and 200-day moving averages, at 3.28 euros and 3.52 euros respectively, are significantly above the current price, illustrating the underlying bearish trend. The widening gap between these two moving averages underscores the persistent weakness of the stock over several months. The high monthly volatility of 32.31% reflects the instability surrounding the case, amplified by ongoing recapitalization operations.

Credit Rating Improvement

Moody's agency upgraded Eutelsat's long-term credit rating from B2 to Ba3 on December 1st, stating that its stable outlook would depend on the company's ability to stabilize its results over the next 12 to 18 months. This rating improvement reflects a recognition of the financial restructuring effort undertaken by the group. At the conclusion of the operation, finalized on December 16th, the French state will become the main shareholder with nearly 30% of the shares. The Chaikin Money Flow (CMF) at -0.15, however, indicates that capital flows remain negative, showing persistent investor caution despite the day's rebound. In this complex context, the technical recovery observed this Thursday appears more like a breather than a sustainable trend reversal.