(CercleFinance.com) – Eutelsat lost more than 1% in Paris after Berenberg announced on Tuesday that it had lowered its price target for the Eutelsat Communications share, which it reduced from 11.6 to 7.1 euros.
The design office – which maintains its recommendation to ‘keep’ the value – is not completely convinced by the satellite operator’s merger project.
‘The great debate around Eutelsat remains its proposed merger with OneWeb’, recalls the analyst in a research note.
‘We believe that the scale of the short-term dilutive impact on earnings and cash flow, in addition to the increased risk profile of the new entity, are likely to keep out, at least in immediately, investors who traditionally position themselves in the satellite and telecom sectors,” concludes Berenberg.
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