Eutelsat Communications Stock Timidly Rebounds After a 24% Drop Over a Week
Eutelsat Communications' stock is showing signs of recovery mid-morning after a challenging week marked by a sharp profit-taking. The increase remains modest as the SBF 120 trends downward. The satellite operator is seeking a balance after the harsh correction at the end of May.
A Fragile Technical Rebound Following a Near 24% Weekly Drop
Eutelsat Communications' stock is up 0.73% at €3.035 in mid-morning trading, in a Parisian market trending downwards (SBF 120 -0.79%, CAC 40 -0.81%). The stock is attempting stabilization after losing nearly 24% over the past week. The movement is confined to a modest technical rebound, without triggering massive buybacks. The price is now 11.8% below its 20-day moving average of €3.44, a level broken during the late May tumble and now turned into an immediate resistance. The RSI at 44 indicates a lack of clear directional pressure, following the recent selling exhaustion. However, the stock still maintains a comfortable cushion above its 200-day moving average at €2.70 (+12.4%), reflecting a 55% rally over three months.
Strong LEO Dynamics Amidst Imminent Competition from SpaceX
The backdrop remains supported by the strategic reorientation towards low-earth orbit connectivity. During the revenue announcement for the nine months of 2025/2026 (on May 12, 2026), the group confirmed its annual targets, with LEO activity up 50% year-over-year. The partnership concluded last Thursday with Tototheo Global for the distribution of OneWeb services in the maritime sector extends this commercial momentum. Agreements signed since spring (Anuvu, Tototheo) confirm traction in the connectivity segment. However, the recent correction coincides with the upcoming IPO of SpaceX, scheduled for June 11, which revives questions about Eutelsat's competitive positioning against Starlink. The stock remains largely profitable for the quarter (+55%) and year (+56%), but must now reclaim its 20-day moving average at €3.44 to technically validate the correction exit.
