Major Shareholder Doubles Down on Eutelsat at Key Price Level

Eutelsat FR0010221234

A significant insider purchase is providing a vote of confidence for Eutelsat following a period of share price pressure. The move by a key stakeholder comes alongside operational updates, raising questions about whether a critical support level has now been established.

In a notable display of conviction, anchor shareholder Bharti Space Limited has substantially increased its holding in the satellite operator. The entity acquired approximately 88.7 million shares at a price of 1.35 euros per share. This substantial transaction volume acts as a stabilizing force for the equity, which had recently been weighed down by the dilutive effect of a 1.5-billion-euro recapitalization.

The decision to enter at this specific price point suggests the major investor views the current valuation as a fundamental floor. This action contrasts with the uncertainty that emerged in early December when SoftBank sold its subscription rights.

Operational Momentum and Analyst Perspective

Concurrent with this financial activity, Eutelsat announced a new operational development. A memorandum of understanding signed Tuesday with Canadian firm Clear Blue Technologies aims to advance the Konnect WiFi Service across Africa. While the immediate financial impact of this partnership is expected to be limited, it highlights the ongoing monetization of the company's satellite assets in emerging markets.

Analysts at Oddo BHF resumed coverage of the stock on Monday. Their rating is "Neutral," accompanied by a price target of 1.70 euros. The revised target, down from a previous 2.60 euros, primarily accounts for the dilution resulting from recent capital measures. However, the analysts acknowledged the now-secured financing for the company's Gen-2 satellite constellation.

For investors, the 1.35-euro level, reinforced by the insider buying, will be a key marker to watch in the coming weeks. The future trajectory of the share price is likely to hinge on concrete details regarding the collaboration with the ISRO for the Gen-2 rollout and evidence that partnerships like the one with Clear Blue can scale effectively.