Oddo maintains its Outperform rating on Safran, with a price target raised from 136 to 138 euros.
With Safran due to publish its 2022 results on February 17, the research firm is betting on EBIT growth of 34% to ME2,427, and lfl sales growth of 15.5% to ME18,966.
In addition to earnings growth, Safran benefited from advances on Rafale export contracts, as well as increased Leap flight hours. Safran should therefore end the year with a net cash position close to 0.4 MdE, which paves the way for a real share buyback", says the analyst.
The broker models an EBIT of 3,016 ME in 2023 for sales of 22,266 ME, while the VA consensus is 3,072 ME and 22,387 ME respectively.
Copyright (c) 2023 CercleFinance.com. All rights reserved. The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
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%).
SAFRAN 
