On Friday, Barclays raised its price target for SES from 7.2 to 7.8 euros, while maintaining its 'overweight' recommendation on the stock, which it considers to be 'cheap'.

In a research note issued the day after the publication of the satellite operator's 2023 annual results, the broker emphasizes above all its low stock market valuation.

SES is on track in terms of sales", says the research house, which notes that the Group's business exceeded market forecasts for the eighth consecutive time in Q4 2023.

"And its revenue outlook for 2024 is, when we look at the mid-point of the range, 3.5% above consensus", argues Barclays.

That's not bad for such a cheap stock", continues the intermediary, who highlights an Enterprise Value/Ebitda ratio of 4.5x, compared with 6.1x for its main European comparables.

"Overall, even if the sector is facing difficulties, we see potential for SES stock to recover as the group returns to sales growth", he concludes.

The only downside is that Barclays regrets that the Group has not disclosed its plans for the use of its free cash flow (shareholder remuneration, mergers & acquisitions), an announcement which it believes should be made when the next half-yearly results are released.

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