Eutelsat: Berenberg downgrades stock
(CercleFinance.com) - Berenberg said on Tuesday that it has downgraded its rating on Eutelsat Communications shares from "buy" to "hold", while maintaining its target price for them at 12 euros.
In its comments, which were entitled "Being cheap is not enough", the German broker explains that Eutelsat - like SES - is known by investors for its propensity to miss the consensus, a characteristic that leads some to consider the two stocks as "value traps".
It adds that questions surrounding the long-term future of audiovisual revenues are likely to persist, also pointing to the uncertainty around when the Covid crisis will finally end, even though some more modest growth levers are now emerging.
As such, Berenberg says that it prefers SES because of its greater exposure to the issue of C-band spectrum release demanded by the US.
Eutelsat shares are currently up just over 1%, while SES shares are ahead, up almost 2%.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In its comments, which were entitled "Being cheap is not enough", the German broker explains that Eutelsat - like SES - is known by investors for its propensity to miss the consensus, a characteristic that leads some to consider the two stocks as "value traps".
It adds that questions surrounding the long-term future of audiovisual revenues are likely to persist, also pointing to the uncertainty around when the Covid crisis will finally end, even though some more modest growth levers are now emerging.
As such, Berenberg says that it prefers SES because of its greater exposure to the issue of C-band spectrum release demanded by the US.
Eutelsat shares are currently up just over 1%, while SES shares are ahead, up almost 2%.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.