Analyst Chloe Lemaire of Jefferies maintained a Hold rating on Thales, retaining the price target of €250.00.
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Chloe Lemaire’s rating is based on Thales’s recent financial performance, which showed resilience despite initial concerns. The company’s order intake in the second quarter was notably strong, increasing by 15% year-over-year, largely due to significant orders. However, sales figures slightly missed expectations, with a 2% decrease in the second quarter and a 1% decrease in the first half, primarily impacted by the Aerospace and C&D sectors.
Despite these sales challenges, Thales’s adjusted EBIT exceeded expectations by 2%, thanks to improved margins in the Aerospace division. Additionally, the company’s free cash flow was stronger than anticipated, attributed to better working capital development. These mixed results, with strong order intake and improved margins but slightly lower sales, contributed to Chloe Lemaire’s decision to rate Thales’s stock as a Hold.
In another report released on July 8, Morgan Stanley also maintained a Hold rating on the stock with a €250.00 price target.