Stifel picks SES over Eutelsat amid Starlink-Amazon duopoly in satellite market

SES SA

12/09/2025 14:47

** In a highly competitive satellite market, Stifel picks Luxembourg-based operator SES SESFg.LU over France's Eutelsat ETL.PA, resuming coverage with a "hold" and a "sell" rating on the shares, respectively

** Despite Starlink-Kuiper duopoly threat, analyst Antoine Lebourgeois says SES can counterbalance this with compellingly low valuation

** Key events affecting SES include successful Intelsat integration, proceeds from C-band spectrum clearing, a disciplined capital allocation policy and European IRIS² constellation project

** Eutelsat's financials remain deeply challenged despite gaining strategic government importance and 1.5 billion-euro ($1.76 billion) capital increase, Stifel says

** "Competition will intensify outside the government sector as the commercial satcom market consolidates into a duopoly, dominated by SpaceX's Starlink and Amazon's Kuiper."

** Target prices: Eutelsat 2.4 euros (19% discount to Thursday's 2.97 euros close); SES 5.7 euros (4.2% discount to Thursday's close)

($1 = 0.8538 euros)

(Reporting by Gianluca Lo Nostro)

((gianluca.lonostro@thomsonreuters.com;))