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Investing.com -- Deutsche Bank has initiated coverage of two European defense optronics companies, Theon International (AS:THEON) and Exosens (EPA:EXENS), highlighting growing demand for night vision equipment across the region.
Theon International, a manufacturer of night vision goggles, was rated “buy” with a target price of €40. Exosens, a supplier of image intensifier tubes, was given a “hold” rating with a target price of €45.
Analyst Sriram Krishnan said Europe’s night vision goggles market is projected to become the largest globally by 2027 as product penetration rises to match the United States.
Current penetration in Europe is about 30%, compared with 100% in the U.S., with Germany expected to lead adoption.
Theon holds about 50% market share in the fragmented European NVG market, while Exosens accounts for 70% of the supply of image intensifier tubes in the region, according to Deutsche Bank.
Both companies are expected to see organic revenue growth of 13% to 15% in the medium term, supported by production constraints in Europe and U.S. export restrictions.