Thales: Positioned For Europe's Defense Boom With Steady Growth
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Dhierin BechaiInvesting Group LeaderFollow5ShareSavePlay(10min)CommentsSummaryThales remains a buy, targeting 12%–27% upside based on 2026–2027 earnings and higher EV/EBITDA multiples.THLLY delivered 7.6% sales growth and 14% organic EBIT growth in 2025, with margin expansion and 27% higher free cash flow.2026 guidance targets 5–7% sales growth, 12.6–12.8% EBIT margins, and 95–100% free cash flow conversion, with defense and aerospace leading.Cyber & Digital remains a weak spot, but THLLY’s net cash position by 2027 and European defense exposure underpin the investment case.Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More » eugenesergeev/iStock via Getty Images Thales (THLLY, THLEF), a leading European aerospace and defense company with cybersecurity exposure, has lost 4.2% since my last report. The stock price performance of Thales remains volatile, driven by inconsistent growth betweenThis article was written byDhierin Bechai23.42K FollowersFollowDhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.