SES: still pressure

(Boursier.com) — HIS still stumbles by 1.3% below 6 euros in the middle of the session this Friday, despite Morgan Stanley which is ‘on line’ on the file with a target raised to 7 euros. Berenberg had previously downgraded the satellite operator to ‘hold’, given a difficult environment despite a cheap valuation. The analyst believes that C-band revenues are now “widely perceived”, that video is in continuous decline, while repeated launch slips make commercial planning difficult… Ebitda downward revisions over the last four years “gives food for thought”, the broker also noting the costs linked to the change in management. The company will likely focus on reinvestments rather than shareholder returns. The price target is thus reduced to 6.8 euros.