Eutelsat Shares Rise 3.34% at Close Following Fundraising Announcement
Eutelsat Communications' stock closed on Tuesday, November 18, at 3.25 euros, up 3.34% from the previous day's close of 3.15 euros. This session occurred in an unfavorable Paris stock market context, with the CAC 40 down 1.86% at 7,967.93 points. Trading volumes represented 0.37% of the capital, indicating a renewed interest in the satellite operator's stock. The stock has seen mixed recent dynamics: up 1.72% over seven days and 4.67% over three months, but down 12.68% over one year.
Capital Increase and Strategic Investments
Eutelsat's Board of Directors approved on Monday a reserved capital increase of 828 million euros at a price of 4.00 euros per share. The French State will subscribe 551 million euros, Bharti Space Limited 30 million euros, the British government 90 million euros, CMA CGM Participations 100 million euros, and the Strategic Participation Fund 57 million euros. This announcement comes two days before the scheduled mixed general meeting on November 20, 2025. A second capital increase of 672 million euros will be carried out by the end of 2025 through a rights issue. Eutelsat has received irrevocable subscription commitments representing over 70% of the planned amount for this operation. These two capital increases aim to enhance the group's financial flexibility and support investments in its low-orbit capabilities and the upcoming IRIS² constellation.
Technical Analysis and Market Position
Technically, the stock is trading below its 50-day moving average at 3.39 euros, and also below the 200-day moving average at 3.45 euros, indicating a still hesitant underlying trend. The RSI at 40 confirms the absence of overselling and suggests room before reaching a bullish tension zone. The MACD, with a line at -0.10 and a signal line at -0.09, shows a slight but persistent negative momentum, hinting at possible stabilization. The stock is moving within a volatility channel defined by Bollinger bands, between 3.01 euros (lower bound) and 3.72 euros (upper bound). The current price is in the median zone, aligned with the unavailable 20-day moving average for this analysis. The technical support is identified at 3.12 euros, while the first resistance is at 3.98 euros. Breaking through this threshold could indicate a lasting reversal of the stock.
Financial Strategy and Market Outlook
Following these two capital increases and the planned divestment of the passive terrestrial segment in the second half of fiscal 2025-26, Eutelsat anticipates a net debt to adjusted EBITDA ratio of about 2.5 times at the close of fiscal 2025-26. Eutelsat confirms its targets for fiscal 2025-26, aiming for revenue in line with fiscal 2024-25 and a slightly lower adjusted EBITDA margin. Revenue from LEO activities is expected to grow by 50% year-on-year. This comprehensive financing strategy comes as the European space sector seeks to assert itself against American and Chinese competition, with active support from the French and British governments.
