Thales Stock Falls Despite Raised Target to 292 Euros by Analyst
Thales stock is down 1.46% in today's session at 263.60 euros, in an almost stable Parisian market. This decline occurs as Alphavalue has just raised its price target on the stock, and the stock still shows a gain of over 7% over the past seven days.
The analysis firm Alphavalue updated its recommendation on Thales this Tuesday, raising its price target from 274 to 292 euros, while maintaining an 'underweight' advice. This revised target represents a potential upside of about 10.8% from the current price of 263.60 euros. Despite this increase, the caution displayed by the analyst does not seem sufficient to support the stock in the early afternoon. Thales is trading lower while the CAC 40 marginally gains 0.03% in the session, at 7,964.70 points. Over a year, the stock has nevertheless increased by 10.8%, a performance that reflects the dynamics driven by the defense and security sectors, the group's core activities. The general meeting scheduled for May 12th will be the next key event for shareholders.
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From a technical standpoint, Thales' stock price is immediately near its resistance at 268 euros, a threshold it has yet to cross. The stock is also at the upper end of its Bollinger Bands: at 263.60 euros, it positions itself at 96% of the range defined by the upper bound (264.94 euros) and the lower bound (232.74 euros), a zone indicating a potential for short-term overbuying. The Relative Strength Index (RSI) stands at 64, a high level that does not yet indicate a marked excess beyond the threshold of 70. All these elements suggest that the stock is in a tense configuration after its weekly rebound of more than 7%. The 50-day moving average, positioned at 251.75 euros, remains well below the current price, confirming that the medium-term trend continues to be upward despite today's consolidation.
Net income: 2 005 millions d'euros (Résultat Net Ajusté, part du Groupe)
Free cash flow: 2 577 millions d'euros
Net debt: -1 618 millions d'euros
Dividend per share: 3,90 €
Payout ratio: 40 %
Guidance from the release
2025 a été une très bonne année avec des commandes records et une croissance du chiffre d’affaires, démontrant l’excellence opérationnelle du Groupe.
Communiqué indiquant des commandes records, un chiffre d’affaires en hausse et une rentabilité améliorée en 2025, avec des perspectives 2026 positives et un dividende soutenu.
Outlook / guidance
Expected revenue: Entre 23,3 et 23,6 milliards d'euros en 2026
Expected EBITDA: Non précisé publiquement
Expected net income: Non précisé publiquement
Management commentary: Pour 2026, Thales vise un book-to-bill supérieur à 1 et une croissance organique du chiffre d’affaires entre 6 % et 7 %, correspondant à un chiffre d’affaires entre 23,3 et 23,6 milliards d’euros, et une marge d’EBIT Ajusté entre 12,6 % et 12,8 %; le taux de conversion en cash devrait se situer entre 95 % et 100 %.
The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.
Investments in the stock market involve risks, including the risk of capital loss. Past performance of an asset or market is no guarantee of future results. Any investment decision should be made taking into account your personal financial situation, objectives and risk tolerance.
