Thales Shares Decline During Session Following Deutsche Bank Downgrade
On Tuesday, Deutsche Bank downgraded its recommendation on Thales from 'buy' to 'hold', reducing its price target to 280 euros due to uncertainties about the French defense budget and the lack of imminent catalysts. The stock fell by 1.92% to 265 euros, displaying an RSI in the overbought zone at 86, suggesting a technical pause after a 7.68% surge over seven days.
Deutsche Bank Modifies Thales Rating and Price Target
Deutsche Bank downgraded its recommendation on Thales from 'buy' to 'hold' this Tuesday, January 13, and lowered its price target from 285 euros to 280 euros. Following this downward revision, the stock showed a decline of more than 2% in the morning. This technical correction follows a week marked by a nearly 8% increase and a spectacular 83% gain over twelve months. Deutsche Bank justified this decision by citing the absence of imminent catalysts and a context of increasing uncertainties regarding the French defense budget and ongoing delays in cyber sales. The analyst highlighted that 20% of the group's revenues are exposed to French defense spending, a significant risk as the French Parliament did not adopt a budget in December 2025. This situation could lead to a capping of defense spending in 2026 at 2025 levels, pending an agreement. Despite this caution, Deutsche Bank acknowledges Thales' technological superiority but prefers a conservative approach in the short term.
Technical Analysis of Thales Stock
Technically, Thales stock is in a pronounced overbought situation. The Relative Strength Index (RSI) reaches 86, a level significantly above the critical threshold of 70 that traditionally delineates overbought zones. This suggests that after the strong progress in recent sessions, a phase of consolidation or technical breathing is likely in the very short term. The price is now just below the major resistance threshold of 270.20 euros, which was crossed on Monday but not confirmed on Tuesday. The MACD (Moving Average Convergence Divergence) still maintains a favorable setup, with a MACD line at 9.29 significantly above the signal line at 4.76, confirming that the underlying trend remains bullish despite the day's pullback. The stock also trades well above its key moving averages: 236.05 euros for the MM50 and 244.30 euros for the MM200, forming a solid ascending channel for several weeks. This robust technical structure, combined with major support at 219.50 euros, provides a comfortable safety margin for investors, although the high volatility of 9.67% over a month reflects the magnitude of recent movements and calls for caution.
