Deutsche Bank announced on Tuesday that it had raised its recommendation on Safran shares from 'hold' to 'buy', with a target price of €243, up from €214.
In a note, the analyst justifies his decision by the correction that followed the group's last investor day, while highlighting the strength of the dossier from a long-term perspective.
'Safran is known for promising little but doing better than expected', the intermediary recalls.
The investor day was no exception to the rule, in our opinion", he continues.
"While targets may have been perceived as below expectations, we consider them prudent for our part", says Deutsche Bank, which sees the launch of a five-billion-euro share buyback program as another positive factor, testifying to the group's confidence in its ability to generate cash flow.
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Safran is a high technology international group, a leading equipment provider in the Aerospace and Defense markets. The group specializes in the design, manufacturing, and marketing of equipment and systems of high technology mechanical and electronic equipment. Net sales break down by product family as follows:
- aeronautic and space propulsion systems (51.2%): helicopter motors (No. 1 worldwide), civil and military airplanes motors, systems for space lancers and missiles, turboreactors for drone targets, etc.;
- aircraft equipment, defense systems and aerosystems (38%): airplane engine pods, landing gear, braking systems, electric wiring systems, etc. Safran also offers on board aircraft systems and equipment (primarily evacuation slides, emergency arresting systems, protective parachutes and oxygen systems, electrical power management systems, control systems, water and waste management systems and connectivity systems) and defense and security systems (helicopter flight controls, fingerprint-based biometric identification systems (No. 1 worldwide), inertial systems, optronic systems, tactical drone systems, etc.);
- aircraft interiors (10.7%): cabin interiors and seats;
- other (0.1%).
Net sales are distributed geographically as follows: France (19.4%), Europe (24%), the Americas (34.8%), Asia and Oceania (13.2%), Africa and the Middle East (8.6%).