The action of the defense electronics group shows the only drop this session within the Cac 40. In Milan, Leonardo, who works in the same sector, fell by more than 8% while analysts are worried about the soaring inflation in the 2023 accounts.
Thales excluded from the party on the stock market, weighed down by the Italian Leonardo | Photo credits: Y. Bourdin/Photopointcom ©THALES
In a euphoric session, where the Cac 40 is boosted by new rumors of the exit from the zero Covid policy in China, Thales is an exception, down almost 2%. This is the only drop in the flagship index.
The title of the defense electronics group is weighed down by Leonardo’s fall of more than 8% on the Milan Stock Exchange, its biggest daily decline since the end of July. The Italian group, which works in the same sector as the French, unveiled third quarter accounts that exceeded expectations on Friday, but investors are 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.