Despite securing a substantial €5 billion in fresh capital to fund its strategic pivot, European satellite operator Eutelsat saw its shares continue their downward trajectory last week. The market’s tepid response highlights investor skepticism, with the stock price breaching a key technical level and extending a months-long decline.
Strategic Shift and Capital Reorganization
The company’s recent financial restructuring was finalized in early March with the issuance of a €1.5 billion senior bond. This move is a cornerstone of a broader plan to reduce debt and aggressively fund expansion in Low Earth Orbit (LEO) operations. A central component of this strategy involves a contract to purchase 340 new satellites from Airbus, aimed at modernizing Eutelsat’s OneWeb constellation.
Eutelsat is deliberately targeting high-value government and industrial clients. This refocus appears to be yielding early results: non-video services now represent 54% of total revenue, and the LEO business segment alone expanded by 60% in the most recent half-year period.
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Technical Chart Points to Sustained Pressure
Operational progress in new sectors has not translated into positive investor sentiment. Shares closed at €2.13 last Friday, a move that saw the price cross below its 38-day moving average—a pattern technical analysts often interpret as a short-term sell signal. The stock has lost over 14% of its value since mid-January. The Relative Strength Index (RSI), currently hovering around 47, further confirms the lack of positive momentum for the equity.
Future Targets and Investor Confidence
For investor confidence to recover, Eutelsat’s management must now deliver on its stated financial objectives. The group aims to reduce its leverage ratio to 2.5 times EBITDA by the close of the 2025/26 fiscal year. Furthermore, if the integration of OneWeb services proceeds according to plan, Eutelsat is targeting total annual revenue exceeding €1.5 billion by 2029. The company expects that rapidly growing space-based broadband services will fully offset anticipated declines in its traditional satellite TV business.
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