THALES : Oddo BHF confirms its target on the stock
December 17, 2024 at 03:59 am EST
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Oddo BHF maintains its 'outperform' rating on Thales shares, with an unchanged target price of 193 euros, as the European Commission yesterday officially signed the 12-year concession contract launching the IRIS² secure communications satellite constellation program with the SpaceRISE consortium (comprising operators SES, Eutelsat and Hispasat).
The budget for the period 2024-36 is currently estimated at 10.6 billion euros, of which 6 billion euros will be provided by the EU.
The aim is to commission the satellite at the end of 2030-beginning of 2031, which means that the first satellites will have to be launched around 2 years earlier," reports the analyst.
Oddo BHF considers IRIS² to be excellent news for satellite manufacturers and in particular for Thales Alenia Space (TAS), and believes that the newsflow should be driven by dynamic order intake, transparency in Cyber and space (contract and potential consolidation).
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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%).