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SES: SG still believes in stock - counts on dividend.

(CercleFinance.com) - After meeting with the investor relations team, Société Générale (SG) has confirmed its buy rating on the stock of the Luxembourg satellite operator SES, with the stock fairly depressed over recent months.

The solid dividend (yield of 10%) should resist until the deployment of the group's recovery, SG mentions in its report. It maintains its target price of 19.5 euros for the share.

For SES, 2017 has been marked by several satellite failures and delays in launches. Admittedly, the group cannot do much about this, although it acknowledges that it has mismanaged expectations and intends to correct this aspect; probably by communicating more cautious targets for 2018 next February, SG reports.

Indeed, the group's sales growth has been under pressure, and should remain so until the second half of 2018. However, these disappointments will also lead to a pause in capex. However, this welcome development should ease the pressure on the group's capacity to generate free cash flow," SG says, which concludes that the possibility of a cut in its dividend (1.34 euro for 2016) is now low (although not negligible) in the medium term.

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