The stock market has shown mixed reactions with last weel’s financial half-year statement from Eutelsat CEO Rodolphe Belmer. Its share price, having risen dramatically by €2 on February 16th fell back 53 cents on February 19th (2.79 per cent) indicating that Eutelsat is not out of the woods just yet.

Perhaps one catalyst was a report from equity analysts at Berenberg Bank which despite agreeing that Belmer’s overview of Eutelsat’s progress was “reassuring”, also cautioned that “we should not get carried away” and cites the 6 per cent like-by-like decline in revenues as a “stark reminder of the difficulties that Eutelsat is currently facing”.

The bank admits that the current half-year for the Paris-based satellite operator (to June 30th) looks better. “That said, at this stage, having been promised better growth before, we prefer to err on the side of caution and adopt a ‘wait and see’ approach.”

“[We] would like to see the company meet our near-term expectations of improved growth before accepting the worst is behind us. We thus reiterate our Hold rating with a price target of €20.30.”

Other posts by Chris Forrester:

1. EU unveils IRIS2 tender documents
2. Musk: ‘Problems with some Starlinks’
3. Busy two weeks for SpaceX
4. Virgin Orbit’s collapse
5. SpaceX: “We can boost launch capacity”
6. Kuiper: More details emerge
7. OneWeb gives up on stolen satellites
8. SES vs Intelsat: Appeal hearing March 20
9. Water could power satellite in orbit

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