Goldman Resumes SES Coverage with 'Buy' and Cuts Eutelsat Target
Goldman Sachs resumed coverage of SES with a 'Buy' rating and a 7-euro target, while cutting Eutelsat's target to 1.60 euros from 5.22 euros.
Goldman Sachs resumed coverage of SES stock with a "Buy" recommendation and a price target of 7 euros, citing over 3 billion euros in net C-band proceeds over roughly four years.
In contrast, the bank lowered its price target for Eutelsat stock to 1.60 euros from 5.22 euros, amid doubts regarding growth targets for fiscal years 2027 through 2029.
SES stock closed at 4.164 euros, down 0.24%, after rising as much as 2.7% earlier in the session. Eutelsat stock closed at 1.7375 euros, down 1.61%, following a drop of up to 5.7% in early trading.
The divergence between the two recommendations reflects a more optimistic outlook on SES's returns thanks to net C-band proceeds, compared to caution over Eutelsat's ability to achieve its growth targets in upcoming fiscal years.
What Do These Terms Mean?
Price Target: The expected price of a stock over a specified period, used by analysts to evaluate whether a stock is overvalued or undervalued.
C-band: A frequency band used in satellite communications and microwave links, which has been repurposed in some countries for 5G services.
Fiscal Year: The accounting period over which a company measures its revenue and profits, and its start date may vary from one company to another.
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