Satellite Sector Momentum Lifts Eutelsat Shares

The satellite communications sector is receiving a fresh valuation boost from two key developments, providing unexpected tailwinds for companies like Eutelsat. A successful satellite launch by a competitor and renewed excitement around a potential industry IPO are shifting market sentiment as the year concludes.

In a development that benefits the broader market, competitor AST SpaceMobile successfully launched its "BlueBird 6" satellite on December 23. This launch is seen as a critical validation of the technological feasibility of "Direct-to-Device" connectivity from space. This is the same core market segment targeted by Eutelsat's OneWeb division, suggesting a growing and viable future for the technology. Separately, speculation around a potential SpaceX initial public offering, with talk of a valuation reaching $1.5 trillion, is prompting a sector-wide re-rating.

Major Shareholder Reinforces Commitment

Strong support for Eutelsat is coming from its anchor investor, Bharti Space. The major shareholder significantly expanded its position during and after a capital increase that concluded on December 9. A particularly notable transaction was Bharti's acquisition of approximately 88.7 million shares at €1.35 per share, reported on December 16. This large purchase is viewed by the market as establishing a firm technical floor for the share price. The stock, which traded at €1.64 late last week, now stands 21% above the anchor investor's entry point.

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

The successfully completed capital raise has also strengthened the company's balance sheet and reduced uncertainty surrounding the financing of the European IRIS² satellite project.

Operational Challenges Remain

Despite these positive technical and sector signals, the market maintains a degree of skepticism. This is reflected in Eutelsat's price-to-sales ratio, which remains below 1.0x. Attention is now turning to the first trading week of 2026, with investors focused on integration progress updates for OneWeb and further details on the IRIS² initiative.

From a chart perspective, the area around €1.35 is seen as a major support level, while €1.75 marks the next significant resistance hurdle. While the volatile period associated with the capital increase appears to be over, the operational performance of the OneWeb constellation must now justify the strong strategic backing provided by Bharti.