Thales Shares Fall Again, Lagging Behind in the CAC 40 Below Its Averages
The defense electronics group continues another session in the red in the Paris market, going against a balanced Parisian index. The stock is now at the bottom of the pack, penalized by a lowered target price from a major Swiss firm. The slide intensifies as the stock now trades well below its moving averages.
UBS Lowers Its Price Target from €390 to €330 While Maintaining a Buy Rating
Today's penalty originates from an adjustment in analyst opinions. UBS has revised its price target on Thales from €390 to €330, while reaffirming its buy rating.
Despite this downward revision, the new target still offers a theoretical potential of about 48% above the current price of €222.30. The decline today extends a negative streak, with a drop of 7.53% over a week and nearly 17% over three months. The stock now ranks at the bottom of the CAC 40, while the broader index remains stable during the session.
The Stock Dips Below Its Moving Averages and Re-tests the €219.40 Support Level
The technical setup has significantly deteriorated since mid-June. The price is now below the MM20 (€231.73) with a gap of 4.07%, and under the MM50 (€234.86) with a deviation of 5.35%. The MM200 at €244.94 is even further away, over 9% above the price. The RSI at 43 remains in the neutral zone, without a clear exhaustion signal from sellers.
The stock is approaching the support at €219.40 again, a threshold previously breached at the end of June and then reclaimed at the beginning of July. The exceptional charge of €450 million related to the cessation of the F126 program, announced on July 3, continues to weigh on sentiment despite revised 2026 targets announced at that time. The next significant event will be the publication of the semi-annual results, a crucial deadline to validate or refute the new trajectory presented in early July.
