Thales: Credit Suisse sees over 20% upside potential
(CercleFinance.com) - Maintaining its buy rating ("outperform") on the Thales stock, Credit Suisse welcomes the results published by the French electronics and defence group.
The broker has raised its target price for the stock from 109 euros to 116 euros, which suggests upside potential of over 20%. The share features on the broker's "Focus List."
Analysts welcome a publication that exceeds expectations in many respects - particularly regarding cash generation, albeit with the exception of the group's dividend.
Admittedly, management's forecasts are considered as "robust" - Thales aims for organic sales growth of 4% to 5% in 2018, with operating profit up around 20%. However, Credit Suisse expects even more: operating income of 1.70 billion euros, above the group's target range of between 1.62 billion and 1.66 billion euros.
Copyright (c) 2018 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 broker has raised its target price for the stock from 109 euros to 116 euros, which suggests upside potential of over 20%. The share features on the broker's "Focus List."
Analysts welcome a publication that exceeds expectations in many respects - particularly regarding cash generation, albeit with the exception of the group's dividend.
Admittedly, management's forecasts are considered as "robust" - Thales aims for organic sales growth of 4% to 5% in 2018, with operating profit up around 20%. However, Credit Suisse expects even more: operating income of 1.70 billion euros, above the group's target range of between 1.62 billion and 1.66 billion euros.
Copyright (c) 2018 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.