Thales: Strong Growth in Defense and Aerospace Amid Declining Orders – Hold Rating Recommended

Jefferies analyst Chloe Lemaire maintained a Hold rating on Thales (0IW5 – Research Report) today and set a price target of €240.00.

Chloe Lemaire’s rating is based on a combination of factors that reflect Thales’s current market position and future prospects. The company is expected to show a solid organic growth rate of 7%, with a reported growth of 9%, primarily driven by its defense segment, which is anticipated to grow by 9%. Additionally, the aerospace segment is expected to benefit from approximately €70 million in M&A tailwinds.
Despite these positive growth indicators, the forecasted orders are projected to be €4.46 billion, which represents an 11% year-over-year decline. This decrease is attributed to a high comparison base from the previous year, which included several large orders. Given these mixed signals of strong growth in some areas but a decline in orders, Chloe Lemaire has opted for a Hold rating, suggesting that investors may want to wait for more consistent performance before making further investment decisions.

In another report released on April 9, Kepler Capital also maintained a Hold rating on the stock with a €230.00 price target.