Safran: well positioned after an upgrade by Deutsche Bank
December 17, 2024 at 03:18 pm IST
Share
Safran shares rose on Tuesday morning on the Paris Bourse, buoyed by a recommendation upgrade by Deutsche Bank from 'hold' to 'buy' on the aerospace equipment supplier.
Shortly before 10:30 a.m., the stock was up 0.9%, the second biggest gainer on the CAC 40 index, behind Airbus (+1.2%), also upgraded by Deutsche Bank.
In its note, the analyst justifies his decision by the correction that followed the group's last investor day, while highlighting the strength of the case from a long-term perspective.
Safran is known for promising little, but doing better than expected", recalls the intermediary.
"In our opinion, the investor day was no exception to the rule", he continues.
While the targets may have been perceived as lower than expected, we consider them prudent," says Deutsche Bank, which sees the launch of a €5 billion share buyback program as another positive factor, reflecting the group's confidence in its ability to generate cash flow.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
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%).