Thales: Oddo BHF still a buyer, adjusts target
(CercleFinance.com) - Oddo BHF reiterates its "buy" rating on the Thales share, following its reassuring results, while shaving its target price to 129.
5 euros (vs. 130 euros previously), mainly because of the stronger-than-expected increase in retirement provisions and an update in its assumptions.
The share is only trading at a very slight premium relative to its European defense peers, while visibility remains high, with a 12.5% CAGR in 2019/22 EPS of 12.5%, despite difficulties in satcom and signaling, the analyst notes.
He also points out that FCF generation is more recurrent than at its peers, with a continued strong momentum in the run-up to its CMD on 3 October. The only additional risk in the near term, that the broker detects appears to be Thales' organic sales growth target, which has been clearly identified.
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.
5 euros (vs. 130 euros previously), mainly because of the stronger-than-expected increase in retirement provisions and an update in its assumptions.
The share is only trading at a very slight premium relative to its European defense peers, while visibility remains high, with a 12.5% CAGR in 2019/22 EPS of 12.5%, despite difficulties in satcom and signaling, the analyst notes.
He also points out that FCF generation is more recurrent than at its peers, with a continued strong momentum in the run-up to its CMD on 3 October. The only additional risk in the near term, that the broker detects appears to be Thales' organic sales growth target, which has been clearly identified.
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.