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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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.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
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.
Copyright (c) 2024 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.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.