May 11 (Bloomberg) -- Eutelsat Communications SA fell the most since it started trading in Paris in December 2005 after the satellite company cut its forecast for full-year revenue.
The stock fell as much as 15 percent to 22.54 euros, and traded down 13 percent at 22.98 euros at 10:05 a.m., giving the company a market value of 5.06 billion euros ($6.54 billion).
Henrik Nyblom, an analyst at Nomura Holdings Inc., downgraded the stock to “neutral” from buy and reduced the target price to 32.5 euros from 36 euros. Nyblom cited “disappointing” third-quarter revenue and the cut to guidance.
“Lower-than-expected near-term growth and lower visibility justifies a more cautious stance,” Nyblom wrote in a note today. “Our cuts reflect a more prolonged period of competitive pressure in certain geographies as the industry continues to add capacity and a more cautious view on the growth potential in multi-usage leasing.”
Eutelsat last night reduced its sales target in the fiscal year through June to about 1.22 billion euros from a previous forecast of more than 1.24 billion euros. The satellite company expects full-year earnings before interest, taxes, depreciation and amortization to be about 955 million euros, down from a previous prediction of more than 955 million euros, it said.
Analysts had estimated full-year sales of 1.24 billion euros and Ebitda of 966.5 million euros, according to the average of 16 estimates compiled by Bloomberg.
Eutelsat will give an update on its medium-term outlook when it reports full-year earnings on July 30.
Challenges for Eutelsat include “a more competitive environment in the Balkans and Africa” and partial delays in the rollout of some services, Chief Executive Officer Michel De Rosen said in the statement.
Third-quarter revenue rose 4.6 percent to 308.7 million euros.
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