THALES : Oddo BHF confirms its recommendation on the stock
April 30, 2024 at 10:23 am EDT
Share
Oddo BHF maintains its 'neutral' rating on Thales shares, with an unchanged target price of €146.
The analyst points out that Thales has reported a good start to the year, with sales and order intake 1.5% ahead of expectations, with orders up €100 million on initial forecasts.
Against this backdrop, Thales is unsurprisingly reiterating its previous forecasts, with sales expected to come in at between €19.7 billion and €20.1 billion (i.e. organic sales growth of between 4% and 6%). The consensus is positioned at 20,044 ME.
Finally, Thales is targeting an EBIT margin of 11.7% to 12% (consensus 11.9%). 'This good start to the year certainly shows that bottlenecks in the supply chain and recruitment are easing, offering renewed optimism', judges the broker.
Copyright (c) 2024 CercleFinance.com. All rights reserved. The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
Thales is one of the European leaders in manufacturing and marketing of electronic equipment and systems for the defense and security, aerospace, and transportation sectors. Net sales break down by product group as follows:
- defense and security systems (53.4%): C4I defense and security systems (control and monitoring systems, communication, protection, cyber-security, and other systems), defense mission systems, naval systems, electronic war systems, drones, air operation systems (air defense, air surveillance), ground defense systems and missiles;
- aerospace systems (28.4%): avionics equipment (cockpit, cabin multimedia, and simulation equipment), space systems (satellites, payloads, etc.);
- digital identification and security solutions (18.2%).
Besides, the group owns a 35% stake in Naval Group (manufacture of naval equipment for defense and nuclear energy sectors).
Net sales are distributed geographically as follows: France (29.5%), the United Kingdom (6.6%), Europe (24.8%), the United States and Canada (14%), Asia (9.4%), Near and Middle East (6%), Australia and New Zealand (4.4%) and other (5.3%).
THALES 
