Thales Shares Jump 2.7% at Midday After Confirming Targets

Strong Performance Following Annual Targets Confirmation

Thales records the highest increase in the CAC 40 after maintaining its 2025 annual targets, confirmed this morning at the end of its pre-closing teleconference for the fourth quarter. The stock is trading at 262 euros mid-session, up 2.7% from its previous close at 255.10 euros. This performance is part of an upward trend over the year, with the stock having jumped 80.25% over this period. The group still anticipates organic sales growth of 6 to 7%, a margin between 12.2 and 12.4%, a book-to-bill ratio greater than 1, and a cash conversion rate of 95 to 100%. Technically, the RSI reaches 70, indicating an overbought zone that could lead to a short-term consolidation. However, Thales is confident in achieving its margin target for the defense activity, which should be above 13%, indicating very high profitability. The stock is significantly above its 50-day moving average, located at 236.85 euros, confirming the strength of the current upward trend.

Defense Segment Outlook Remains Steady

Regarding the defense segment outlook, growth remains unchanged, with no acceleration expected beyond the 7-9% after slowing down in the fourth quarter due to a high comparison base last year. The space activity is expected to show slight growth in 2025, while the Cyber segment will not return to positive growth until 2026. These signals have been well received by the market, as evidenced by the flow of buyers since the opening. Analysts maintain divergent views on the stock. Deutsche Bank recently downgraded its recommendation from 'buy' to 'hold' on January 13, with a target reduced from 285 to 280 euros, representing a potential upside of 6.9% from the current price. Conversely, UBS has a much more ambitious target of 380 euros with a buy recommendation, while Bernstein targets 275 euros after upgrading its stance to 'outperform' at the beginning of January. The stock is now testing its resistance at 270.20 euros, a breakthrough of which would pave the way for new highs.