Safran: stock up on Deutsche Bank upgrade

(CercleFinance.com) - Safran shares rose on Tuesday morning on the Paris Bourse, buoyed by a recommendation upgrade by Deutsche Bank from 'hold' to 'buy' for the aerospace equipment supplier.


Shortly before 10.30am., 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, the broker says.

In our opinion, the investor day was no exception to the rule, it adds.

While the targets may have been perceived as lower than expected, we consider them prudent, Deutsche Bank says, which sees the launch of a E5bn share buyback program as another positive factor, reflecting the group's confidence in its ability to generate cash flow.


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