Analyst Chloe Lemaire from Jefferies maintained a Hold rating on Thales and decreased the price target to €240.00 from €250.00.
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Chloe Lemaire’s rating is based on a combination of factors that reflect both opportunities and challenges for Thales. The recent SAMP/T contract win in Denmark is a significant achievement, marking the first export order for the system. This contract is expected to build order momentum similar to the Rafale’s initial success in Egypt, potentially leading to further contract awards in the future. The Danish order could amount to up to €2bn, excluding maintenance and through-life support, which is a substantial opportunity for Thales.
However, despite these positive developments, there are also factors that warrant caution. While there is an expected increase in European space funding, with commercial momentum in Space slightly better than anticipated, the full impact of this will not be realized until 2025. Additionally, although cyber disruptions are largely over, the return to growth in the second half of the year is still anticipated rather than guaranteed. These mixed signals contribute to the Hold rating, as they suggest a balanced outlook with both potential upsides and uncertainties.
According to TipRanks, Lemaire is a top 100 analyst with an average return of 36.5% and an 87.06% success rate. Lemaire covers the Industrials sector, focusing on stocks such as Airbus Group SE, MTU Aero Engines, and Rolls-Royce Holdings.
In another report released on September 11, Kepler Capital also maintained a Hold rating on the stock with a €240.00 price target.