Eutelsat Communications Could Win Or Lose In Equal Measure

2025-04-17 13:20:37 ET

Summary

• Eutelsat Communications S.A. is navigating a tough transition from legacy geostationary satellite services—primarily video, which still makes up over 50% of revenue but is declining—toward a low Earth orbit, or LEO, network.
• Financial challenges and market pressures have driven recent stock volatility. A discounted cash flow, or DCF, model estimates a base price target of $2.20 (about 50% downside).
• Despite risks, there's upside potential if Eutelsat can stabilize its legacy revenue and grow its fixed connectivity segment, which could push EUTLF stock returns above 100%.

I am initiating coverage on French satellite operator Eutelsat Communications S.A. ( OTCPK:EUTLF ) in light of recent pricing volatility....

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