Goldman Sachs Downgrades Eutelsat Price Target Amid Growth Concerns

Goldman Sachs has downgraded Eutelsat Communications' price target to 1.60 euros, about one-third of its previous valuation, while maintaining a 'Hold' rating. This downgrade is due to concerns over the company's ability to achieve its mid-term growth targets for fiscal years 2027 to 2029, particularly after a merger with OneWeb. Analysts highlighted a 'credibility gap' and noted that Eutelsat's historical revenue growth has been below two percent, while management aims for annual growth of eight to nine percent, which is seen as challenging amid competition from Starlink.