Why is Eutelsat stock rallying today?

Eutelsat stock experienced a significant surge of +12.0% on Friday, reaching €1.69, as investors speculated that European satellite operators, particularly Eutelsat's OneWeb constellation, could fill the gap left by Starlink's restriction of military-grade satellite connectivity in Ukraine. This resurgence follows a volatile three-day period, with the stock soaring over 23% on Wednesday before losing more than half of its gains on Thursday.

The positive momentum is fueled by two key developments: Sunil Bharti Mittal, Eutelsat's board co-chairman and one of its largest shareholders, stating that Eutelsat OneWeb is ahead of Starlink in the queue for India's satellite internet licensing process, and SES, a sector peer, also advancing sharply, indicating a broader boost in the European satellite connectivity space.

The broader French market, however, provided limited support, with the CAC 40 trading essentially flat on the day. The persistent Ukraine-Starlink demand shift, Mittal's India commentary, and the positive movement across European satellite peers have collectively propelled Eutelsat to the top of the SBF 120's daily gainers list, despite analysts maintaining an average price target of around €2.27 and a consensus Hold rating, who question the durability of the speculative demand shift for the company.