Thales: Credit Suisse downgrades buy rating
(CercleFinance.com) - Credit Suisse has downgraded its buy ("outperform") rating on the stock of French electronics and defense group Thales to neutral, having slashed its target price for the share from 140 euros to 108 euros (-22.
The broker has also removed the share from its Focus List.
Credit Suisse has "no major fundamental worries" about Thales, its report says. However, Credit Suisse believes that "any upside on the stock will be limited in the coming months after a strong 2018 performance," which reaches 25% relative to the Stoxx 600 index. This is particularly so, as defense and tech stocks are experience a "de-rating".
In addition, analysts fear a reduction in the French military budget, in response to ongoing social protests.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.