Eutelsat shares fell on the Paris Bourse on Monday, penalized by the downgrading of Goldman Sachs' advice to 'neutral' from 'buy' on the satellite operator.

At 10.10 a.m., the share price was down 3.2%, while the SBF 120 index was losing 0.1% at the same time.

Analysts at Goldman Sachs, whose price target has been lowered from 14 to four euros, say they are concerned about the impact of the OneWeb acquisition and intensifying competition on the group's profitability.

New projects in LEO technology are associated with high structural costs at a time when the competitive environment is getting tougher", the consultancy worries.

In addition, Goldman warns that 'the medium-term evolution of free cash flow (FCF) remains highly dependent on the successful execution of projects, both in terms of capital allocation and timing, as well as on rising interest rates'.

In these conditions, analysts say they see only 'limited' upside potential for the stock.

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