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Thales’s Strong Financial Performance and Promising Outlook Driven by Defense Sector Growth

Thales’s Strong Financial Performance and Promising Outlook Driven by Defense Sector Growth

Chloe Lemaire, an analyst from Jefferies, maintained the Buy rating on Thales (0IW5Research Report). The associated price target remains the same with €190.00.

Chloe Lemaire’s rating is based on Thales’s strong financial performance and promising future outlook. The company reported impressive sales and earnings before interest and taxes (EBIT) for the second half of the year, surpassing both consensus and Jefferies’ expectations. This was largely driven by the defense sector, which showed significant growth, particularly in the fourth quarter.
Additionally, Thales’s free cash flow was robust, exceeding consensus estimates by a substantial margin. The proposed dividend also suggests confidence in the company’s financial health. Furthermore, the current consensus for the fiscal year 2025 EBIT guidance appears conservative, not fully accounting for potential increases in defense spending, which could further enhance Thales’s financial performance.

In another report released yesterday, J.P. Morgan also maintained a Buy rating on the stock with a €220.00 price target.

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