Eutelsat Communications (ENXTPA:ETL) shares have seen a small uptick in the last week. Over the past month, however, the stock is down nearly 9% as the company continues to navigate shifting market conditions.
See our latest analysis for Eutelsat Communications.
Momentum in Eutelsat Communications’ share price appears to be slowing after a strong start to the year. A recent 30-day share price return of -9.3% contrasts sharply with its impressive year-to-date gain of 46.4%. When looking at the bigger picture, the 1-year total shareholder return stands at just 0.9%. This highlights that most of this year’s move has only recently materialized while longer-term holders have felt little reward following steep declines since 2021.
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With shares trading close to analyst price targets and mixed long-term returns, the big question is whether Eutelsat Communications is now undervalued or if expectations of future recovery are already reflected in the market.
At €3.23, Eutelsat Communications trades just below the most widely followed narrative’s fair value of €3.39. This places it within close range of analyst expectations and hints at modest upside.
The signing of the SpaceRISE consortium agreement and the IRIS² multi-orbit constellation project is a catalyst for growth. It represents significant investment in future satellite infrastructure and is expected to generate around €6.5 billion in revenues over a 12-year concession period, which will positively impact future revenue streams.
Curious what bold strategic bets, revenue growth projections, and future margins are driving this target? The narrative’s bullish case hinges on assumptions that may surprise even seasoned investors. Unlock the full breakdown to see the hidden levers behind this fair value estimate.
Result: Fair Value of €3.39 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, ongoing declines in the GEO segment and rising financial pressures could present challenges for the expected recovery, putting long-term revenue goals at risk.
Find out about the key risks to this Eutelsat Communications narrative.
If you have a different perspective or want to dig deeper into the numbers yourself, you can craft your own view in just a few minutes, and Do it your way.
A great starting point for your Eutelsat Communications research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ETL.PA.
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