Thales: Credit Suisse upgrades share, raises target price

(CercleFinance.com) - Credit Suisse has upgraded its rating on the Thales share to Neutral (from Underperform).

The broker has also nudged up its 2021e-2023e earnings estimates and raised its target price for the share to 78 euros (from 75 euros).

"We adjust our EPS by -2%/+3%/+1%/+1% for 2020e-2023e, due to 1/ a cut in 2020e of our Naval Group contribution (previously left unchanged) and 2/ a faster pace of recovery in 2021e of some of Thales' lost business in defence," Crédit Suisse says.

"Our FCF adjustments are similar (0%/+3%/+1%/+1%)".

"The evolution of the global defence outlook remains unclear, in our view. There are tensions in a number of regions (for instance most recently between China and India), but there could be a relaxation of the relationship between Europe and Russia (which could make some defence spending less pressing)," the broker adds.



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