Thales Shares Rise to 266.70 Euros Despite Cautious Recommendation from Barclays

Mid-Session Market Update

Thales shares were trading at 266.70 euros at mid-session this Monday, January 19, up by 1.95% from the previous day's close at 261.60 euros. This increase followed the announcement by Barclays this morning of a raised price target from 250 to 260 euros, while still maintaining an underweight recommendation. This rise is part of a context of remarkable performance over a year, with a surge of 79.6% making Thales one of the most sought-after defensive stocks on the CAC 40. Over three months, the stock has also shown solid progress of 8.68%, confirming the positive momentum of the share. Technically, the RSI has reached 73, signaling an overbought zone that could lead to short-term consolidation. This indicator suggests that the stock has experienced rapid progress and might pause soon. Moreover, the price is significantly above its 50-day moving average set at 237.14 euros, confirming a well-established upward trend. The stock is now testing its major resistance at 270.20 euros, a key level whose breach could pave the way for new highs.

Mixed Analyst Opinions

Analyst opinions remain mixed on Thales. While Barclays raised its price target to 260 euros this Monday, Deutsche Bank recently downgraded its recommendation on January 13, changing it from buy to hold with a reduced target from 285 to 280 euros. The German bank cites ongoing uncertainties about the French defense budget, noting that 20% of the group's sales depend on national military spending. This caution contrasts with the position of UBS, which has set a much more ambitious target of 380 euros with a buy recommendation since January 9, and Bernstein, which targets 275 euros after upgrading to outperform at the beginning of January. The group confirmed its annual 2025 targets in mid-January during its pre-closing conference for the fourth quarter, anticipating organic sales growth between 6 and 7% and an adjusted EBIT margin between 12.2 and 12.4%. These guidances were well received by the market, reassuring investors about Thales's ability to maintain its profitability trajectory despite an uncertain environment. The group's order book remains particularly well-oriented, supported by commercial dynamics in defense and aerospace, two sectors driven by the increase in European military budgets.