Could Thales (ENXTPA:HO) Unlock New Naval Opportunities Through Enhanced Undersea Collaboration?

• Huntington Ingalls Industries and Thales recently announced the successful integration and field exercise of Thales' SAMDIS 600 sonar with HII’s REMUS 620 unmanned underwater vehicle, marking a major milestone in advancing autonomous undersea mine countermeasure capabilities.
• This collaboration leverages decades of expertise to deliver enhanced undersea security and mine detection solutions, underscoring Thales' position as a leading provider of advanced naval sonar technologies.
• We'll examine how integrating Thales' SAMDIS 600 sonar with HII's REMUS 620 vehicle could influence Thales' future growth outlook.

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Thales Investment Narrative Recap

To be a Thales shareholder, you need to believe in the company's ability to deliver long-term growth as defense spending rises, innovation in autonomous technologies continues, and Thales stays at the forefront of security and defense solutions worldwide. The recent successful integration of SAMDIS 600 sonar with HII’s REMUS 620 unmanned vehicle is positive for Thales’ standing in advanced naval technology, but this event alone is not expected to shift the most important short-term catalyst, continued European defense budget acceleration, nor does it directly offset the primary risk tied to government spending cycles and contract timing.

Among recent announcements, Thales’ revised guidance for 2025 organic sales growth (+6% to +7%, targeting EUR 21.8 to EUR 22.0 billion in sales) stands out for investors assessing the impact of major contract wins and partnerships like the one with HII. This focus on meeting ambitious growth targets aligns with the underlying expectation that Thales continues capturing opportunities as governments increase defense budgets and prioritize advanced security capabilities.

By contrast, investors also need to consider the risk that future delays or disruptions in defense budget approvals could...

Read the full narrative on Thales (it's free!)

Thales is projected to reach €26.5 billion in revenue and €2.2 billion in earnings by 2028. This outlook assumes annual revenue growth of 7.5% and an earnings increase of €1.2 billion from the current €1.0 billion level.

Uncover how Thales' forecasts yield a €279.21 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Based on 11 Simply Wall St Community fair value estimates, Thales’ value opinions range widely from €142.63 to €361.63 per share. Many participants base their views on future contract momentum, yet ongoing reliance on government defense funding means shifting budget priorities could influence both performance and sentiment, prompting a look at several alternative viewpoints.

Explore 11 other fair value estimates on Thales - why the stock might be worth 44% less than the current price!

Build Your Own Thales Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Thales research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Thales research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Thales' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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