We believe the company's share price is likely to consolidate near present levels as it absorbs its recent aggressive evaluation rating.
Although Thales politely left the door open to a subsequent deal with EADS, which could bring Thales to its satellite business, we believe this is unlikely.
We believe demand could be very strong for oil products as we head into winter, because of high natural gas prices.
Oil demand elsewhere in Asia has slowed somewhat relative to 2004, but is still growing. Despite some evidence that demand growth has been impacted by higher prices, we believe this is temporarily moderating demand.
We believe the 21 percent discount to our target price should close through 2006.