Eutelsat Shares Decline Midday Despite More Favorable Recommendation

Completion of Capital Increase and Shareholder Restructuring

The European satellite operator announced on Friday the completion of its capital increase of approximately 1.5 billion euros, with a final tranche of about 670 million euros. This operation marks the culmination of a strategic plan presented in June 2025 aimed at strengthening the group's financial structure. The demand for this second fundraising reached nearly 892 million euros, showing a subscription rate of 133%. However, the stock lost 7.56% this Friday at midday, standing at 1.932 euros, with 0.66% of the capital traded. Over a week, the decline reaches 6.21%, and extends to 16.51% over three months. The annual performance now stands at -20.01%, reflecting a lasting distrust by investors due to the dilutive effect of these operations. Following the issuance, settlement-delivery, and the admission of new shares for trading on the regulated market of Euronext Paris, scheduled for December 16, 2025, the French state will be the main shareholder of Eutelsat, with a stake of 29.65%, ahead of Bharti Space Limited (17.88%), the British state (10.89%), CMA CGM (7.46%), and FSP (4.99%). This new shareholder structure reflects the extent of institutional support provided to the satellite operator. The funds raised aim to finance the deployment of activities in low orbit and the IRIS² constellation, while bringing the debt ratio from 3.9 to about 2.5 by the end of 2026.

Deutsche Bank Upgrades Eutelsat Recommendation

Deutsche Bank announced on Thursday that it had upgraded its recommendation on Eutelsat stock from 'sell' to 'hold' with an unchanged price target of 2.3 euros. The analyst argues that the satellite operator now has more cash thanks to this 1.5 billion euro fundraising, which will allow it to reduce its debt ratio from 3.9 times to about 2.5 times. Despite this upgrade, the price target remains nearly 19% above the current price, suggesting limited short-term catch-up potential. The market seems to anticipate that the group's high investment expenses, related to the deployment of the low orbit constellation, will continue to weigh on cash flow generation. The improvement in the financial structure is thus not yet sufficient to reassure investors about the group's ability to quickly generate value.

Technical Analysis of Eutelsat's Stock

Technically, Eutelsat is in a very degraded configuration. The Relative Strength Index (RSI) stands at 16, a level characteristic of extreme overselling, which reflects an intense selling movement and a stock largely neglected in the short term. This situation may constitute a technical breathing signal, but it does not guarantee any lasting reversal without a fundamental catalyst. The stock is significantly below its moving averages: the 50-day moving average (MM50) is at 3.13 euros, which is 62% above the current price, and the 200-day moving average (MM200) at 3.47 euros, confirming a structurally bearish trend established over several months. The MACD (Moving Average Convergence Divergence) shows a line at -0.33 and a signal at -0.32, with an almost neutral histogram at -0.01, suggesting a possible slowdown in the bearish momentum without however indicating a bullish reversal. The Chaikin Money Flow (CMF) remains negative at -0.16, indicating net capital outflows. The stock is currently testing a technical support at 1.97 euros, a level already reached during the last sessions, while a resistance is forming at 3.38 euros. With a one-month volatility of 33.07%, the stock retains a high-risk profile, characteristic of a case subject to significant operational uncertainty and a major dilutive effect. The Average True Range (ATR) of 0.12 euro confirms this significant daily amplitude, reflecting erratic movements in an unfavorable environment.