Thales: Credit Suisse still a buyer

(CercleFinance.com) - Credit Suisse estimates that sales, EBIT and EPS for 2020 were broadly in line with the consensus (respectively +0%/+1%/+3% compared to the consensus provided by the company).


FCF is, however, twice the level expected by the market (1,057 million euros versus the consensus of 529 million euros).

"We adjust our forecasts for a slower recovery in civil aerospace (avionics and IFE) partially offset by better Space following the recent key wins announced by Thales (Galileo, Telesat and Satria in Indonesia). This leads us to reduce our 2021e/2022e EPS by -4% each year, with 2023e unchanged and a 1% increase in 2024e," the analyst said.

"We also revise down our FCF expectation for 2021e to E1.13bn vs E1.28bn previously, to reflect the reversal of the 2020 positive timing benefits," the broker adds.

Credit Suisse has nudged up its target price for the share to 92 euros (vs. 90 euros previously - current price: 81 euros, -2.4%) and reiterates its Outperform rating on the stock.



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