DB raises Eutelsat to 'hold' on balance sheet relief

Eutelsat Communications SA

11/12/2025 09:08

** Deutsche Bank upgrades French satellite operator Eutelsat Communications ETL.PA to "hold" from "sell", citing near-term balance sheet comfort from a capital raise

** The broker notes the confirmed 1.5 billion euros ($1.76 billion) rights issue will cut the company's leverage to about 2.5x from 3.9x, addressing previous concerns on its financial health

** The upgrade comes despite the brokerage's belief that "capex will remain elevated medium term", which was a core reason for its prior negative rating

** DB keeps its price target at EUR 2.30, pointing out that the shares trade below this level after accounting for the rights issue dilution

** Out of 8 analysts that cover Eutelsat Communications, ​six rate "hold" and two​ rate the stock "strong sell" or "sell" - LSEG data

($1 = 0.8546 euros)

 (Reporting by Clement Martinot)

 ((Clement.Martinot@thomsonreuters.com;))