Eutelsat Surges 7.78% on Monday, Boosted by Announcement of a Strategic Order of 340 Satellites
Eutelsat Communications rose by 7.78% this Monday to 2.0650 euros, bolstered by the announcement of an order for 340 new OneWeb low-orbit satellites from Airbus, bringing the total ordered from the European manufacturer to 440.
Mid-Session Market Update
Eutelsat Communications is trading at 2.0650 euros mid-session this Monday, marking a 7.78% increase from last Friday's close at 1.92 euros. This uptick represents a technical recovery following a period of significant correction: the stock is still down 29.6% over three months, reflecting investor skepticism towards the group's hefty investment program. However, over the year, the stock is up 27.67%, reflecting interest in the growth potential of the low-orbit satellite connectivity segment. The Relative Strength Index (RSI) stands at 57, placing the stock in a neutral zone, away from the oversold levels seen at the end of December. The price slightly exceeds the upper Bollinger band at 2.07 euros, indicating a return of bullish volatility after several weeks of erratic movement. The stock is now well above the support threshold of 1.64 euros, but still remains distant from the resistance at 2.18 euros, which will be a key test to confirm the recovery trend.
Strategic Expansion in Satellite Network
Eutelsat announced this Monday that it has entrusted Airbus Defence and Space with the construction of 340 new OneWeb low-orbit satellites, increasing the total number of satellites ordered from the European manufacturer to 440. This strategic move aims to strengthen the group's LEO connectivity network, positioning it as one of the only two fully operational low-orbit systems in the world and the sole operator at this scale in Europe. This announcement comes at a time when Eutelsat is expanding its commercial initiatives, particularly in Africa and with governments. Additionally, the company confirmed in mid-December that it is maintaining its financial targets for the fiscal year 2025-2026, aiming for stable revenue and a slightly reduced adjusted EBITDA margin. Concurrently, the group continues its strategic financing plan, including a reserved capital increase of 828 million euros in November 2025, subscribed notably by the French state, the United Kingdom, and Indian Bharti Space Limited, to accelerate debt reduction and support investments in LEO constellations.
