Eutelsat Shares Under Pressure as SoftBank Exits

The satellite operator Eutelsat finds itself in a precarious position following a major divestment by a cornerstone investor. In a move that rattled markets, Japanese technology conglomerate SoftBank has offloaded a substantial portion of its stake, triggering a sharp decline in the share price. Management has responded with an immediate and aggressive strategy announcement, aiming to shore up confidence for a critical ongoing capital raise.

Market anxiety spiked after SoftBank's decisive action. The sale of approximately 36 million subscription rights effectively halves SoftBank's holding in the company. This large-scale disposal sent Eutelsat's stock tumbling and delivered a clear signal: a significant financial backer has lost confidence in the European firm's growth trajectory.

To counter this erosion of trust during a sensitive €1.5 billion capital increase, Eutelsat's leadership unveiled ambitious new financial targets. The company is placing a strategic bet on its "Government Services" division, which it forecasts will grow by a substantial 29% by the 2028/29 fiscal year.

The broader financial roadmap presented includes:
* Revenue Target: Group revenue is projected to reach €1.6 billion by 2029.
* Margin Expansion: The EBITDA margin is expected to rise from the current 54.4% to a robust 60%.
* Debt Reduction: A key leverage ratio is planned to decrease from 3.5x to a healthier 2.5x by 2026.

Should investors sell immediately? Or is it worth buying Eutelsat?

This strategic repositioning frames Eutelsat as a sovereign European alternative to US-based providers like Elon Musk's Starlink, capitalizing on potential government client concerns over security and data sovereignty.

A Race Against Time to Secure Funding

The timing of this strategic offensive is a direct response to pressing deadlines. Trading for the subscription rights concludes on December 5, with the subscription period itself running until December 9. The company faces a tense showdown between now and then.

While rating agency Moody's recently upgraded Eutelsat's rating to "Ba3," citing support from the French state, the technical chart picture remains challenging. The shares are battling to maintain the psychologically significant €2.00 level.

The current situation represents a high-stakes tug-of-war. On one side is the fundamental long-term promise of Eutelsat's OneWeb broadband business; on the other is the stark reality of a major institutional investor's retreat. Whether the newly announced growth promises can absorb the selling pressure will become evident in the coming trading sessions.