Safran: well positioned after an upgrade by Deutsche Bank

(CercleFinance.com) - 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.