Deutsche Bank on Monday raised its target price for Safran from €211 to €212, although it felt that the French aerospace group had "limited" room for improvement in its full-year forecasts.

The broker, which has a "hold" recommendation on the stock, said it had revised its estimates for the equipment manufacturer following the publication of its first-half results, which it felt showed fundamentals to remain "solid".

However, it also notes that Safran has not raised its guidance for 2024, preferring to remain cautious in view of ongoing tensions in its supply chain.

Nevertheless, in view of the improved mix of propulsion, aircraft interiors and defense businesses, the broker says it is considering a possible upward revision of the annual operating profit target, but not of the free cash flow (FCF) target.

Deutsche Bank also says it justifies its 'hold' recommendation on the basis of new valuations deemed 'solid'.

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