Thales: Hold Rating Amidst Strong Growth in Defense and Avionics, Challenges in Cyber and Space

Analyst Chloe Lemaire from Jefferies maintained a Hold rating on Thales (0IW5 – Research Report) and keeping the price target at €250.00.

Chloe Lemaire has given her Hold rating due to a combination of factors influencing Thales’s performance. The company is experiencing robust growth in its Defense and Avionics sectors, which are driving a 9% increase in overall growth. However, these positive trends are counterbalanced by ongoing difficulties in the Cyber and Space segments, which continue to present challenges.
Additionally, while order intake is expected to improve with the inclusion of the Indian Navy contract in Q2, the company’s earnings per share (EPS) are anticipated to decline by 3% due to a French tax surcharge. This mixed outlook, with strong sales and EBIT growth but a drop in EPS, has led to the Hold rating as the potential for upside is limited by these headwinds.