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. Full details of SES, Intelsat deal
2. Ariane 6 launch campaign underway
3. Virgin Galactic in stock split
4. Thuraya-3 suffers major problem
5. AST SpaceMobile hit by Class Action
6. Optimism under threat at SES
7. Rivada visits Terran Orbital’s manufacturing HQ
8. Avanti wins spectrum debt obligation case
9. SpaceX breaks records for re-use launchers

Categories: Blogs, Business, DTH/Satellite, Inside Satellite