SES: Barclays deems stock 'a bargain buy'

(CercleFinance.com) - On Friday SES rebounded from the previous day's sharp fall that was triggered by disappointing results, with the stock benefiting from bargain buying as one analyst called the satellite operator "cheap".


After a difficult session on Thursday, which saw the stock fall by 5% following a dimly viewed earnings release, a bargain hunt seems to be underway as Barclays underlines the weakness of its valuation.

SES is confident on the revenue front, the broker says, noting that the group's activity exceeded market forecasts for the eighth consecutive time in Q4 2023.

And its revenue outlook for 2024 is, when we look at the middle of the range, 3.5% above consensus, Barclays argues, which maintains its "overweight" rating with a target price raised from E7.2 to E7.8.

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.

SES shares have recovered slightly from their June 2023 lows, below the E5 mark, but are still trading at lows compared with their 2015 peaks.


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