SES: Barclays raises its target, maintains its 'overweight' rating

(CercleFinance.com) - On Friday, Barclays raised its target price for SES shares from E7.
2 to E7.8, while maintaining its 'overweight' recommendation on the stock, which it considers to be 'cheap'.

In comments issued the day after the publication of the satellite operator's 2023 annual results, above all the broker emphasizes its low stockmarket valuation.

SES is on track in terms of sales, it says, which notes that the group's business exceeded market forecasts for the eighth consecutive time in Q4 2023.

And its revenue outlook for 2024 is, when we look at the mid-point of the range, 3.5% above consensus, Barclays adds.

That's not bad for such a cheap stock, it continues, highlighting an EV/Ebitda multiple of 4.5x, compared with 6.1x for its main European peers.

Overall, even though the sector is facing difficulties, we see potential for SES stock to recover as the group returns to sales growth, it concludes.

The only downside is that Barclays regrets that the Group has not disclosed its plans for the use of its free cash flow (shareholder remuneration, mergers & acquisitions), an announcement which it believes should be made when the next half-yearly results are released.


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