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Eutelsat: 'excessive derating,' according to SG.

(CercleFinance.com) - Société Générale (SG) has slightly trimmed its target price on the Eutelsat Communications share from 28.
1 euros to 27.8 euros (-1.1%).

However, SG analysts maintain their buy rating on the share, mentioning the share's excessive derating after a trivial reduction in the group's targets.

Analysts clearly disagree with the Eutelsat's stock's sanction in the market after its latest trading update: reported sales came in just 0.5% below the consensus, SG highlights. Although the group's divisions disappointed, its major Video division did better than expected.

Admittedly, Eutelsat no longer expects sales growth in 2017/2018, due to the delay in the launch of the Yah3 satellite, which has postponed 15 million euros in billings until the following fiscal year. However, in its research report, SG considers this change in forecasts as fairly insignificant, which also believes that the market has been too hard on the Eutelsat stock.


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