Thales, Leonardo, Airbus: "surprise" EC contracts are "good news"

OHB SE

20/01/2021 16:53

(Adds ODDO analyst comment, updates share moves)
    ** Shares in French and Italian aerospace groups Thales
 TCFP.PA  and Leonardo  LDOF.MI  closed around 4% up, while
French planemaker Airbus  AIR.PA  finished the day 1.2% up
    ** The European Commission awarded https://bit.ly/2M56P5g
two contracts for 12 satellites for a total of 1.47 billion
euros ($1.78 billion) to Thales-Leonardo JV ThalesAleniaSpace,
and Airbus Defence & Space
    ** The space business will still be under pressure in 2021,
ODDO BHF analyst Yan Derocles says, adding any positive news
regarding volumes is thus seen as a plus 
    ** "The signing of a big order is a good news for (Thales's)
2021 order intake", Derocles says 
    ** He adds the contract, not yet signed, comes as "kind of a
surprise," noting Germany's OHB  OHBG.DE  had been selected for
some Galileo contracts in the past, so the fact the EC is moving
to Airbus and Thales is good news for the French companies
    ** This marks the launch of the 2nd Generation of the
European satellite positioning system, Galileo - European
Commission
    ** If signed, the contract could mean 10% of Thales yearly
sales, according to a trader


($1 = 0.8264 euros)

 (piotr.lipinski@tr.com; Charles.regnier@thomsonreuters.com)