Eutelsat Shareholders Face Significant Dilution Amid Capital Increase

In a surprising move, JPMorgan has upgraded its rating on Eutelsat shares despite the satellite operator currently undergoing a substantial capital increase. The stock has suffered dramatic losses since 2022, declining more than 80 percent from previous highs. According to the American banking institution, the most severe downside risks now appear to be priced into the current valuation. However, ongoing rights issues present existing shareholders with the threat of considerable equity dilution.

The French satellite company finds itself at a critical juncture as analysts reassess their positions. JPMorgan raised its recommendation from “Underweight” to “Neutral” while establishing a price target of €1.90. Notably, this target falls below the current trading price of approximately €2.20. This Read more...