Thales: Oddo still says 'buy'

(CercleFinance.com) - Oddo BHF has reiterated its "buy" rating on the Thales share, along with its target price of 126 euros, saying that the share's current valuation provides support, with a return on multiples that has not been seen since 2015.


Thales is trading at a 2020 P/E of 11.6x, representing a discount of 11% compared to the weighted average of European defense peers, the analyst says.

It notes that the share offers a 2019/2023 EPS CAGR of 9.6%, one of the highest FCF yields in its sector with a 2019/2021 average of 6.1%, an option on revenue synergies from Gemalto and a key position on the European defense sector.


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.