Oddo maintains its 'neutral' rating on Thales shares, with a lowered price target from 139 to 134 euros.
According to the analyst, Thales should end the 2022 financial year with around €22 billion in new orders, bringing the order book to €42.5 billion - equivalent to 29 months' sales.
In this context, Oddo anticipates organic sales growth of 5.6% for FY 22 to 17,620 ME (Cons VA: 17,567 ME), i.e. at the top end of the 3.5% to 5.5% range, as well as EBIT of 1,947 ME (+18.1%) versus 1,925 ME for the consensus, i.e. a margin of 11.1%.
Nevertheless, Oddo highlights the recruitment difficulties encountered by Thales, and believes that 'the consensus is certainly still a little too optimistic in its growth forecasts for the coming financial years'.
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Thales is one of the European leaders in manufacturing and marketing of electronic equipment and systems for the defense and security, aerospace, and transportation sectors. Net sales break down by product group as follows:
- defense and security systems (53.4%): C4I defense and security systems (control and monitoring systems, communication, protection, cyber-security, and other systems), defense mission systems, naval systems, electronic war systems, drones, air operation systems (air defense, air surveillance), ground defense systems and missiles;
- aerospace systems (28.4%): avionics equipment (cockpit, cabin multimedia, and simulation equipment), space systems (satellites, payloads, etc.);
- digital identification and security solutions (18.2%).
Besides, the group owns a 35% stake in Naval Group (manufacture of naval equipment for defense and nuclear energy sectors).
Net sales are distributed geographically as follows: France (29.5%), the United Kingdom (6.6%), Europe (24.8%), the United States and Canada (14%), Asia (9.4%), Near and Middle East (6%), Australia and New Zealand (4.4%) and other (5.3%).
THALES 
