THALES : UBS confirms its recommendation on the stock
January 08, 2024 at 06:57 am EST
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The analyst confirms his neutral recommendation on the stock, with a target price of E 145, representing 6% upside potential compared with the current price.
The consensus figures for 2024 seem far too high, particularly in the space sector, but buyers' expectations may have already been adjusted, says UBS.
Thales has confirmed its annual targets, i.e. organic sales growth of between 5% and 7% and an operating margin (Ebit) of between 11.5% and 11.8% for 2023.
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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%).
THALES 
