Eutelsat Shares Fall at Close, Morgan Stanley Adjusts Target
Eutelsat Communications shares fell by 6.27% this Tuesday, January 20, closing at 2.39 euros, after having risen by 8.64% the previous week. American bank Morgan Stanley adjusted its price target to 2.50 euros from 2.73 euros, while maintaining a market-weight recommendation. The satellite operator's stock continues to be marked by high volatility amidst the deployment of its OneWeb constellation in low Earth orbit.
Morgan Stanley Lowers Price Target on Eutelsat
Morgan Stanley has lowered its price target on Eutelsat to 2.50 euros from 2.70 euros previously, while maintaining its market-weight stance. This revision comes as the stock has made significant gains since the start of the year. The new target offers a potential upside of 4.6% from the closing price on January 20. Another analyst note from Oddo BHF has reduced its price target to 1.70 euros from 2.60 euros previously, with a neutral recommendation. Industry professionals are thus showing increased caution regarding the operational trajectory of the European operator. Over one year, the stock has nevertheless shown a progression of 42.55%, illustrating renewed investor interest in the stock.
Eutelsat's RSI Indicates Overbought Territory
Eutelsat's RSI stands at 87, a level indicating a significant overbought zone and suggesting a technical correction might follow the recent rise. This indicator confirms that the stock has experienced a strong upward momentum before today's decline. The price remains slightly above the 50-day moving average of 2.31 euros, indicating that the intermediate trend is still favorable. The order of an additional 340 OneWeb satellites from Airbus Defence and Space, bringing the total ordered to 440 units with delivery expected from the end of 2026, provides strategic support for the operator. The one-month volatility reaches 22.91%, reflecting the magnitude of recent price movements in a changing industrial context.
