THLLY - Thales: Will Be A Different Company In 2024 (Rating Upgrade)
2024-03-07 23:43:20 ET
Summary
- Thales reports strong earnings for the FY, driven by the recovery in civil aviation and after-market sales, as well as lower representation of weak margin segments in the mix.
- Defense and security segment performs well with visibility as a leader in its market and a strategic relation with the ongoing Rafale deliveries to major buyers in the Middle East.
- The company's tech-oriented DIS segment is undergoing dramatic change, that will create a cybersec and digital identity business within Thales comparable to leading cybersec picks.
- This year's results mainly reflect an aftermarket recovery, solid defense dynamics, and mixed effects. Next year's results will look very different due to inorganic changes.
- THLEF growth profile and profit profile will improve both from inorganic shifts and operational improvements in aerospace. Thales looks like a GARP idea.
...
Thales: Will Be A Different Company In 2024 (Rating Upgrade)