Safran: one of the CAC40's biggest winners in 2024

(CercleFinance.com) - Safran is currently one of the best-performing components of the CAC40 index, posting a year-to-date increase of almost 32%, despite a 7.
3% drop in early December, due to a disappointing outlook for 2025-28.

As a reminder, the high-tech group had, for example, forecast operating income of 4.7-4.8bn euros in 2025, below the consensus of E4.9bn according to UBS, as well as sales growth of only 7%-9% p.a. over 2024-28.

Meanwhile, Barclays commented Safran's management team is known for setting cautious targets, but the financial forecasts for 2028 unveiled this morning go beyond this usual prudence.

While this outlook has weighed on the share price over the past month, the annual results are nonetheless largely positive for the share price, buoyed by the solid performances unveiled during the year.

In the first six months of 2024, Safran posted increases of 19.2% in sales and 41% in operating income recurring, reflecting 'strong demand in the aerospace propulsion and defense sectors, Saxo Banque says.

The success of LEAP engines and the strategic acquisition of Preligens, which specializes in artificial intelligence for the defense industry, are strengthening the company's growth momentum, the Danish bank adds.

Over the past week, Deutsche Bank has upgraded its recommendation on Safran to 'buy', with a target price raised to E243, highlighting the company's solid long-term outlook.


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