Update shared on 13 Dec 2025
Fair value Decreased 22%Analysts have lowered their price target for Eutelsat Communications from €6.70 to €5.22, reflecting a higher required discount rate, slightly stronger expectations for revenue growth, profit margins, and a lower future price to earnings multiple.
What's in the News
- Completed a €669.8 million follow on equity rights offering, issuing 496.1 million new common shares at €1.35 each to strengthen the balance sheet and fund growth initiatives (Key Developments).
- Closed a separate private placement of 207 million shares at €4 per share, raising €828 million in gross proceeds from institutional investors (Key Developments).
- Announced a lock up agreement for major shareholders including the French State, Bharti, the UK Government, CMA CGM and FSP, with restrictions running from December 9, 2025 to June 17, 2026 to support equity market stability (Key Developments).
- Confirmed medium term guidance, targeting €1.5 billion to €1.7 billion in revenues by fiscal 2028 to 2029, with low Earth orbit activity expected to grow 50 percent year on year and outpace the wider market (Key Developments).
- Signed multiple strategic client agreements, including renewal of its Cinecolor Group cinema distribution deal in Latin America and new partnerships to expand OneWeb connectivity in Greenland, support AfricaCom 2025 with Clear Blue Technologies and underpin Hungary's HUSAT satellite program (Key Developments).
Valuation Changes
- Fair Value: reduced from €6.70 to €5.22, falling significantly to reflect a more conservative outlook.
- Discount Rate: increased from 9.98 percent to 11.19 percent, rising moderately and indicating a higher perceived risk profile.
- Revenue Growth: nudged up from 4.29 percent to 4.58 percent, rising slightly on improved growth assumptions.
- Net Profit Margin: increased from 6.73 percent to 7.06 percent, rising modestly on expectations of better operational efficiency.
- Future P/E: lowered from 44.51x to 33.84x, falling markedly in line with a more cautious valuation multiple.
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