Equity analysts at Deutsche Bank put out their major end-of-year report on the media sector on December 16th, but Paris-based Eutelsat did not come out well.
In particular, analyst Laurie Davison is worried. He says SES (which is also rated down to ‘Hold’ on his recommendation) has done “far more to differentiate its model from the weakest areas of the satellite industry to the growth areas. Eutelsat has done far less and its guidance looks at risk.”
Davison adds that the next 24 months trading are a “crunch” period for Eutelsat as it drives towards a stabilisation in revenues. However, the analyst adds that Eutelsat’s self-imposed target return to revenue growth for its 2019 financial year “looks implausible”.