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All eyes on Eutelsat

February 15, 2016

This coming Wednesday will see satellite operator Eutelsat unveil its half-year results.

February 14th saw Australian investment bank Macquarie reaffirm its ’Outperform’ rating on Eutelsat. It is not alone.

February 15th saw equity analysts at Exane/BNP-Paribas reiterate “BUY” for Eutelsat in a note to clients. They are expecting Eutelsat’s results to be a “significant positive” for the company.

“Our positive fundamental case is that over the coming months it will become increasingly clear that the accelerating growth in Video revenues will more than offset any weakness in Data and lead to either consensus upgrades or, at the very least, a greater belief that Eutelsat’s organic revenue growth can accelerate towards 4 per cent in FY 16/17 – this is crucial as, since 2006, the major driver of the stock has been the market’s belief in organic revenue growth. The stock has performed well over the last month with +8 per cent outperformance – we think this is not only justified but we see more outperformance ahead & note that the stock is still one of the worst large capital Media stocks over last 12mth with just 1.6 per cent underperformance,” states the bank.

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