Eutelsat stock drops 36% over the quarter, persistent lack of confidence
Pressure is mounting on Eutelsat Communications, whose share price is losing ground at the beginning of October, in an SBF 120 down more than 1%. Bernstein revised its price target downward the previous day, intensifying lack of confidence around a stock already significantly eroded over multiple timeframes.
Bernstein lowers its target to €2.40 as the stock loses 16% over the month
Bernstein reduced its price target from €2.90 to €2.40 on September 29, while maintaining an analyst consensus rating at "market perform". Even recalibrated downward, this target implies a rebound potential of nearly 55% compared to the current price of €1.546, illustrating the extent of accumulated decline. Over one month, the stock loses 16%, and over three months, the decline exceeds 35%.
This prolonged slide reflects the ongoing transformation of the satellite operator's business model, which seeks to strengthen its presence in low-Earth orbit connectivity through its OneWeb constellation, while managing the decline of its legacy geostationary business. The stock remains ranked 85th in the SBF 120 during trading, far from the most volatile positions in the index, but with no sign of stabilization.
An RSI in oversold territory at 29 but moving averages still weighing upward
From a technical perspective, the RSI at 29 places Eutelsat in oversold territory, a level that reflects the exhaustion of selling momentum without necessarily signaling a short-term reversal. The stock is trading below its three moving averages, with a gap of more than 13% below the 20-day MA at €1.78 and nearly 19% below the 50-day MA at €1.92. The nearest resistance stands at €1.96, well above the current price, while the former support level of €1.58 — breached during the September 24 session — has now transformed into a ceiling.
Market context is not helping: the CAC 40 is down 1.3% during trading amid tension on French sovereign bond yields, with the 10-year OAT approaching its highest level since July 2008 at 4.75% according to the Banque de France reading from September 30. The €1.96 resistance constitutes the first level to monitor for any attempted recovery.
