Berenberg initiates Eutelsat and Avio with defence, sovereignty in focus

Eutelsat Communications SA

02/09/2026 07:03

** Berenberg starts coverage of satellite firm Eutelsat ETL.PA and rocket maker Avio AVI.MI with "hold", saying long-term value is moving towards scalable connectivity and data services as global defence spending increases
** "Near term, defence and sovereignty budgets provide de-risked demand while commercial markets scale, and we believe pricing power sits with the few proven high cadence launch providers," Berenberg says
** The broker highlights Eutelsat's role in the EU's IRIS² programme aiming to create a European competitor to Starlink
** However, execution risks remain due to increased capital expenditures, it says
** It raises its PT for satellite operator SES SESFg.LU by 14% after factoring in an expected payout of €3.2 billion ($3.7 billion) from freeing up U.S. spectrum frequencies
     
COMPANY
RATING
OLD RATING
PT
OLD PT
Eutelsat
Hold
n/a
€2.00
n/a
SES
Buy
Buy
€10.40
€9.10
Avio
Hold
n/a
€33
n/a
     
($1 = 0.8636 euros)

(Reporting by Gianluca Lo Nostro)
((gianluca.lonostro@thomsonreuters.com;))