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Eutelsat shares at all time low, again

November 1, 2023

By Chris Forrester

October 31st saw Eutelsat’s share price create a new all time low of just €3.97. The day opened with a value of €4.22 and there was a downward slide to just €4, although a late rally pushed the price per share up to €4.03, an overall fall on the day of five per cent. The past 30 days have seen Eutelsat’s share price tumble 28 per cent.

The fall place Eutelsat’s market capitalisation at €2.01 billion and represents a fall over the last 12 months of 60.5 per cent.

Not helping Eutelsat was a damning note from investment bank Berenberg talking about the merger between Eutelsat and OneWeb, saying: “The merger has completely changed the investment case and risk profile of Eutelsat, from one of a highly cash-generative, dividend-paying value stock, to a non-cash generative, non-dividend paying growth company. With a free float of now only 28 per cent, and the risk inherent in the investment case having increased at a time when broader market risk appetite has diminished, we believe investor interest and sentiment towards Eutelsat are both currently very low.”

Ratings agency Fitch still has Eutelsat on its ‘Negative’ long-term watch and a rating on BBB. It has been on Fitch’s ‘Negative’ long-term watch since July 2022 and ever since it announced its merger with OneWeb.

In September 2023, Eutelsat announced a share repurchase move to cover 58,739 shares at a value of €381,000, and representing less than five per cent of its share capital.

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