Thales: share up with Credit Suisse focusing on recovery
(CercleFinance.com) - On Friday morning, the Thales share is up in Paris Stock Exchange, thanks to a Credit Suisse upgrade, which, after the Covid-19 crisis, expects the group's earnings to improve significantly.
Analysts have therefore upgraded their rating on the stock from "neutral" to "outperform," having raised their corresponding target price from 78 euros to 80 euros (27% upside potential).
At shortly after 11 am the share of the defence electronics engineering group was up 0.6%, one of the biggest risers in the CAC 40 index, which at the same time was down 1.2%.
Anticipating a 36% drop in the group's FY earnings, analysts say they expect a 51% rebound in profit in FY 2021.
"We believe that current price levels reflect concerns about growth that are unwarranted given the long-term outlook for defence (45% of sales) and digital security (18%), even when accounting for COVID-19 pandemic risks," analysts said.
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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.
Analysts have therefore upgraded their rating on the stock from "neutral" to "outperform," having raised their corresponding target price from 78 euros to 80 euros (27% upside potential).
At shortly after 11 am the share of the defence electronics engineering group was up 0.6%, one of the biggest risers in the CAC 40 index, which at the same time was down 1.2%.
Anticipating a 36% drop in the group's FY earnings, analysts say they expect a 51% rebound in profit in FY 2021.
"We believe that current price levels reflect concerns about growth that are unwarranted given the long-term outlook for defence (45% of sales) and digital security (18%), even when accounting for COVID-19 pandemic risks," analysts said.
Copyright (c) 2020 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.