Thales: Credit Suisse still a buyer

(CercleFinance.com) - The analyst believes that Q1 is likely to be a non-event for group sales.


"We forecast sales to be marginally down organically in Q1 (-1%), with an FX headwind taking revenues to E3.784bn (-3%) overall," Credit Suisse says.

"In Aerospace, we expect Avionics and IFE to be down c40% (performance similar to that of Q3 2020)," analysts add.

The analyst believes that Defense should benefit from a slightly favourable comparison base (Q1 2020 impacted by the first wave of COVID disruptions). He also says that Digital Security could be disappointing, against a strong Q1 2020 in SIM and contactless cards (which benefited from the first months of the year).

"We expect orders of E3.2bn in Q1, up 22% vs Q1 2020," Credit Suisse says.

The broker is maintaining its target price at 92 euros and reiterates its Outperform rating on the stock, which is currently up over 1% in Paris.


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