Eutelsat Shares Find Support from Strategic Investor and African Expansion

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Eutelsat shares are entering the holiday period with modest gains, showing signs of stabilization following a heavily dilutive capital increase. The primary catalyst for this newfound steadiness is the entry of a major strategic shareholder, while the company concurrently announced a smaller but strategically significant deal to expand its African footprint.

The recent share price consolidation must be viewed in the context of a substantial capital raise. In early December, Eutelsat completed an equity offering that raised approximately €1.5 billion.

The objectives of this financing round were threefold:
* Reducing the company's debt burden
* Funding the development of the OneWeb satellite constellation
* Contributing to the implementation of the European IRIS² project

While this move significantly alleviated immediate liquidity concerns, it also diluted per-share value and pushed the stock to new lows. Against this backdrop, market participants are interpreting the current share price holding above the €1.35 issuance level as an initial indication that the equity is finding its footing post-capital measure.

Bharti Space Consolidates Its Stake as Strategic Anchor

The most significant recent development is the action taken by Bharti Space Limited. The Indian investor has substantially increased its holding and now controls roughly 17.88% of Eutelsat's capital.

Key transaction details include:
* Acquisition of approximately 88.7 million Eutelsat shares
* A purchase price of about €1.35 per share
* A price point matching the recent capital increase issue price

By entering at this level, Bharti Space signals its view that the area around €1.35 represents an attractive valuation. With the share price now at €1.71, notably above the issue price, this supports the thesis that a base may be forming around the capital raise level. The French state remains the largest anchor shareholder with nearly 30%, followed by Bharti as the second-largest.

African Agreement Reinforces LEO Connectivity Strategy

On the operational front, Eutelsat is reporting progress in expanding its connectivity services across Africa. The company has signed a memorandum of understanding with Canada's Clear Blue Technologies.

The partnership's main elements are:
* Expansion of the "Konnect WiFi" service across the African continent
* Deployment of off-grid smart power solutions for remote regions
* An initial order valued at approximately 1 million Canadian dollars
* An option for up to 15,000 systems over a three-year period

While the financial scale is modest relative to Eutelsat's overall size, the agreement demonstrates that its Low Earth Orbit (LEO) strategy, linked to OneWeb, is moving beyond theory into practical application within the African market.

Analyst Sentiment: Cautious and Measured

Market analysts are currently expressing guarded optimism. Oddo BHF has adjusted its price target to €1.70, maintaining a "Neutral" rating. BNP Paribas has initiated coverage with a €2.00 target, suggesting slightly greater upside potential.

The current valuation focus centers on several critical factors:
* The successful integration and realization of synergies from the OneWeb merger
* A consistent reduction in corporate debt
* The ongoing dilutive impact of the capital increase on the share price

Bharti Space's increased involvement is currently serving as a crucial psychological support for the stock. The key determinant for future performance will be Eutelsat's ability to deliver on the expectations linked to its capital raise and LEO strategy, particularly regarding debt reduction and operational execution.