1 month ago
Safran: Aftermarket Power And Margin Expansion Justify Strong Buy (Rating Upgrade)
Summary
Safran is upgraded to Strong Buy with a $479.52 price target, reflecting 21% upside potential.
Robust 2025 results: revenues up 14.7% to €31.3B, operating income up 26.2% to €5.2B, margins expanding across segments.
2028 outlook raised: 10% annual sales growth, a recurring operating income target of €7–€7.5B, and €21B cumulative free cash flow.
Valuation uplift driven by higher EV/EBITDA multiple, operational momentum, balance sheet strength, and potential for increased share repurchases.
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Safran SA (SAFRF, SAFRY), a key supplier in the commercial aviation and defense sectors, rallied 13.6% since my last report, outperforming the S&P 500’s 1.3% gain. The company reported its full-year earnings in February along with an update to
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This article was written by
Dhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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