BofA Forecasts 'Solid' Defense Momentum, Cyber Upside for Thales in Upcoming Q3 Results

03:59 AM EDT, 10/14/2026 (MT Newswires) -- Thales' (HO.PA) upcoming third-quarter results are expected to show "solid" defense momentum and a pickup in cyber growth, BofA Global Research said in a Tuesday earnings preview note. "We forecast 3Q26 B2B of 1.2x, led by Defence at 1.4x, with Aerospace slightly lower at 0.9x, and Cyber & Digital at 1x. We forecast 8.5% YoY org sales growth in 3Q (cons 7.9%). Defence remains strong at 11% YoY, though slightly lower vs 13% YoY in H1. We see further evidence of Cyber acceleration in 2H, and in Aerospace we see strong Space growth and a solid Civil backlog," analysts wrote ahead of the French defense technology company's third-quarter sales and order intake report due Oct. 22. The research firm forecasts Thales' cyber division could potentially emerge as a "more valuable asset" in 2027 due to artificial intelligence-related disruption. BofA added that while lingering concerns over the "challenging" Imperva integration remain a drag on the stock, an ongoing operational recovery should serve as a rerating catalyst. Analysts lifted the stock's price objective by 3 euros to 315 euros to account for currency adjustments. "We reiterate Buy, given the portfolio's quality, particularly in air defense, and attractive medium-term growth prospects in Space and Aerospace," the note said.