Market Paradox: Eutelsat Upgraded Yet Shares Slip

Eutelsat’s stock is currently illustrating a striking market quirk: Deutsche Bank removed its Sell rating and nudged the stock to Hold on December 11, 2025, after a capital-raising measure strengthened the company’s balance sheet. Yet the market reaction has been negative, with the shares trading at 2,06 euros and sliding roughly 2,14 percent on the day—a paradox given the improvement in fundamentals.

Deutsche Bank ends Sell rating

On December 11, 2025, Deutsche Bank abandoned its prior Sell view and elevated the stance to Hold. The shift stems from a capital move of 1,5 billion euros that noticeably fortifies Eutelsat’s balance sheet. With the balance-sheet anxieties that had weighed on the stock now alleviated, the financial risk picture has improved.

Despite the reassessment, the price target remains 2,30 euros. From the current level, that implies an upside of about 12 percent, but it does not constitute a buy signal—rather a cautious stabilization phase.

The facts at a glance

• Current price: 2,06 Euro (-2,14 %)
• Rating Deutsche Bank: Upgraded to "Hold"
• Target price: 2,30 Euro
• Capital measure: 1,5 billion euros to strengthen the balance sheet
• Year-to-date performance: minus 34 percent

Analyst sentiment improves

The positive turn is not limited to Deutsche Bank. Moody’s upgraded Eutelsat’s credit rating in early December, lifting it from B2 to Ba3 and assigning a stable outlook. In late November, JPMorgan adjusted its stance to “Neutral,” while maintaining a conservative target of 1,90 Euro. The trend suggests a growing perception that financing risks have receded, but there is not yet a renewed sense of growth optimism.

Why the market hasn’t followed suit

The gap between improved financial stability and the share price fall has concrete explanations. The sizeable capital influx should reassure lenders, but it also raises the potential for shareholder dilution. At the same time, the operative business remains under pressure: as Eutelsat rebuilds its balance sheet, SpaceX is pursuing a vast satellite constellation—about 15,000 satellites in ultra-low Earth orbit. The pressure from SpaceX’s Starlink and other low-Earth-orbit competitors remains a central challenge to the traditional satellite-telecommunications model.

A bottoming process without buying pressure

The removal of the Sell stamp marks a small victory. The balance-sheet risks have been measurably reduced thanks to the 1,5 billion euros in capital measures. However, the market does not reward that improvement yet because it continues to weigh the company’s operational hurdles more heavily than its financial stabilization. From a charting perspective, the equity remains battered—the protective floor has tightened, and a sustainable rebound still appears distant.