Eutelsat is down more than 1% in Paris, as Berenberg announced on Tuesday that it had lowered its target price for Eutelsat Communications from 11.6 to 7.1 euros.

The research firm - which is maintaining its 'hold' recommendation on the stock - is not totally convinced by the satellite operator's planned merger.

"The big debate surrounding Eutelsat remains its planned merger with OneWeb", the analyst points out in a research note.

We believe that the magnitude of the short-term dilutive impact on earnings and cash flow, in addition to the increased risk profile of the new entity, are likely to keep investors who have traditionally positioned themselves in the satellite and telecoms sectors on the sidelines, at least for the time being", concludes Berenberg.

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