Bank: SES target price of €9.60
June 27, 2025
Analysts at investment bank Berenberg have reinstated coverage of satellite operator SES in a timely fashion and assuming a successful acquisition of Intelsat.
Berenberg says it expects SES to extend its competitive advantage once it closes its acquisition of Intelsat later this year. Berenberg also believes SES will benefit from a rapidly changing geopolitical landscape and a gradual shift away from US satellite capacity reliance. The company’s strong momentum is evident in its impressive 126.83 percent price return over the past six months.
Berenberg sees material optionality value to SES from future additional C-band proceeds from an FCC auction of spectrum, adding another potential upside for the satellite communications company. The firm highlighted these proceeds as a significant factor in its positive outlook.
In other related market news, SES has seen its stock rating upgraded by Swiss bank Kepler Cheuvreux from ‘Hold’ to ‘Buy’, with an increased price target of €7.80. This upgrade is attributed to several factors, including SES’s potential benefits from increased European defense spending and its involvement in the European Union’s IRIS² project. The analyst, Alessandro Cuglietta, has raised the sales and EBITDA margin forecasts for the fiscal year 2030, expecting stronger growth in the Government and Connectivity sectors. SES is also anticipated to rapidly reduce its debt following the acquisition of Intelsat, leveraging its robust free cash flow and expected synergies from the merger. Additionally, the company could potentially receive between $1.5 billion and $4 billion from the upcoming FCC C-band spectrum auction. These developments reflect a positive outlook on SES’s future financial performance, with Cuglietta noting the company as an attractive defense play with a European Union sovereignty angle.
SES is currently trading at around €6 per share.
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