Thales: Oddo BHF still a buyer, confirms TP

(CercleFinance.com) - Oddo BHF maintains its 'outperform' rating on Thales shares, with an unchanged target price of E193.


The analyst reports that Thales will hold its CMD on 14 November, at which time it will unveil its financial targets to 2028.

At this stage, the VA consensus anticipates a sales CAGR of 6.7% over 2024-28, an EBIT margin improvement from 11.7% to 13.5% and an average cash conversion of 96% (FCF/Adjusted net income), Oddo BHF says.

The broker believes that Thales should set a high cash conversion target with an average of 100% over the period, which will result in rapid deleveraging with a restored net cash position as early as FY 27.

Thales will benefit from the reinvestment phase in defense for its European activities but also for exports, as well as greater transparency for its cyber business, it adds.


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