Safran gains nearly 1% in Paris, in the wake of a new analysis by Oddo BHF, which this morning reiterated its 'outperform' rating on the stock, with a price target raised from €173 to €202. The analyst believes that, explaining that the favorable impact of economic tensions is prompting an upward revision of its estimates for the high-tech group.
"Admittedly, following the recent rise in the share price (18.6% since the start of the year), valuation is becoming tighter, with a sliding 12-month PE of 26.5 times compared with 18.5 times for the pre-Covid five-year average, but visibility is strong", the analyst judges.
Oddo BHF estimates average annual EPS growth for 2023-26 at 19%, with a high degree of certainty, and cumulative free cash flow over the next three years at nearly 11 billion euros, a significant portion of which it believes will be returned to shareholders.
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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%).
SAFRAN 
