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Eutelsat shares drop 26% but offer 50% upside amid strong LEO revenue growth and heavy CapEx.

Analyst Insights
23 Sep 2026
Seeking Alpha
View Source
Neutral
Eutelsat shares drop 26% but offer 50% upside amid strong LEO revenue growth and heavy CapEx.

Eutelsat Communications S.A. shares have fallen over 25% despite a 69.5% surge in low Earth orbit (LEO) revenue, which now accounts for 25% of the group's total revenue. The company raised capital to strengthen its balance sheet but continues to face heavy capital expenditures and negative free cash flow expected until at least fiscal year 2028/29. Risks include margin pressure, execution of CapEx plans, and the pace at which government and IRIS² contracts convert into cash flow. Despite these challenges, the stock is considered a buy with over 50% upside potential based on a reduced price target of $3.07.

Eutelsat Communications S.A. shares have dropped over 25% despite a 69.5% increase in low Earth orbit revenue, which now makes up 25% of total revenue. For readers following the Industrials sector, here is Pluang's market snapshot as of Sep 23, 2026 09:41 WIB: out of 92 priced US Industrials stocks, 55 rose and 34 fell. Notable movers include Deere & Company at USD 703.00 (+2.67%), Symbotic Inc at USD 45.12 (+2.64%), and Honeywell International Inc at USD 211.85 (+2.60%), with strong buy order activity on Pluang.

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