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Eutelsat Shares Surge Amid Potential Starlink Replacement in Ukraine
Stock Surge and Market Reaction
Shares in Eutelsat (ETL.PA) surged more than 60% on Tuesday, following a 68% rise the previous day. This sharp increase comes as geopolitical developments raised the prospect of OneWeb satellites replacing Starlink in Ukraine. The stock has nearly tripled in value since Friday’s close.
Geopolitical Tensions and Starlink’s Future
The surge in Eutelsat’s stock follows tensions between Ukrainian President Volodymyr Zelenskiy and U.S. President Donald Trump, which have cast uncertainty over Starlink’s role in Ukraine. Analysts suggest that the Ukrainian army may shift its satellite communications contract from Starlink to Eutelsat’s OneWeb.
Analysts’ Perspectives
According to Stephane Beyazian, an analyst at Oddo BHF, investors are reacting to the possibility of OneWeb becoming the primary alternative to Starlink. The potential contract shift has significantly influenced market sentiment toward Eutelsat.
Impact of U.S. and European Policies
A White House official stated on Monday that Trump would pause all military aid to Ukraine. This development could lead to Europe increasing its support for Ukraine. On Tuesday, the European Commission proposed an €800 billion ($841 billion) defense plan, further emphasizing Europe’s commitment to strengthening its defense infrastructure.
Eutelsat’s Commitment to European Satellite Autonomy
On Monday, Eutelsat reaffirmed its commitment to enhancing Europe’s satellite independence and expanding internet access in Ukraine. ING analyst Jan Frederik Slijkerman noted that Eutelsat’s recent statement highlights its growing role in European defense capabilities.
Challenges in the European Satellite Industry
Despite the recent surge in stock value, the European satellite industry has faced challenges due to strong competition from U.S. companies like SpaceX. The European Commission has been pushing for the IRIS² satellite constellation to bolster Europe’s space capabilities.
Financial Struggles and Market Confidence
Eutelsat has faced difficulties maintaining investor confidence due to concerns over its debt and competition from Starlink. In February, the company’s shares fell to all-time lows after reporting further losses from its geostationary satellites.
Market Outlook
Beyazian pointed out that Eutelsat shares had been heavily shorted due to its high cash burn. However, the recent geopolitical developments and potential contract opportunities have shifted market perception, leading to the recent stock surge.
“Eutelsat Shares Surge Amid Potential Starlink Replacement in Ukraine” “Eutelsat Shares Surge Amid Potential Starlink Replacement in Ukraine” “Eutelsat Shares Surge Amid Potential Starlink Replacement in Ukraine”