The action of the defense electronics group is, like Friday, the red lantern of the flagship index to start the week. After suffering the shock wave of the Italian Leonardo on Friday, the title is downgraded by JP Morgan on Monday.
After Leonardo, the impact of JP Morgan on the stock market for Thales | Photo credits: Bernard Rousseau © THALES
JP Morgan stronger than Redburn… If the latter returns to the purchase of Thales, it is indeed the voice of JP Morgan which prevails on the market this Monday morning. The title of the defense electronics group lost nearly 2%, to 123.05 euros, after its downgrading by the Anglo-Saxon broker, which went from “overweight” to “neutral” while maintaining its price target at 160 euros .
Thales had already finished bottom of Friday’s session, moreover the only drop in the Cac 40 when the index climbed on the contrary by 2.77%. The action had been weighed down by the fall of nearly 8% of Leonardo on the Milan Stock Exchange, its largest daily decline since the end of July.
What impact of inflation?
The Italian group, which works in the same sector as the French, unveiled third quarter accounts that exceeded expectations on Friday, but investors worried about the impact that a peak in inflation in 2023 could have on costs. while 70% of the order book is based on firm and fixed selling prices.
For Christophe Menard, an analyst at Deutsche Bank, who remains on the purchase of Leonardo with a price target nevertheless reduced from 12 to 11 euros, the operating profit for the next financial year will be affected. Monica Bosio, of Intesa San Paolo, also a buyer, believes that inflation and the recessionary environment will be the two headwinds in this file for 2023.