(CercleFinance.com) – JPMorgan on Monday reduced its recommendation on Thales shares from ‘overweight’ to ‘neutral’ with a price target left unchanged at 160 euros.
If he considers that the French electronics company – which he admits to being “very well managed” – is able to benefit from the trend of recovery in military spending in Europe, the intermediary notes that its share price has risen by 72% this year, while market estimates for 2023 and 2024 have only been raised by 7% in the interval.
A constant which leads the analyst, in a study devoted to the sector, to now favor other defense stocks, such as the German Rheinmetall.
JPMorgan also believes that Thales will have to provide some clarifications regarding the recent deterioration in the results of its aeronautics branch, even if it points out that this weakening was offset by the good performance of the security and digital identity businesses.
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