Oddo BHF has reiterated its 'outperform' rating on Safran, and raised its target price from €173 to €202, explaining that the favorable impact of economic tensions has prompted 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 tightening, 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 believes.

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.

Copyright (c) 2024 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.