Safran: Deutsche Bank raises TP
(CercleFinance.com) - On Monday Deutsche Bank raised its target price for Safran shares from E211 to E212, although it felt that the French aerospace group had "limited" room for improvement in its full-year forecasts.
The broker, which has a "hold" recommendation on the stock, said that it had revised its estimates for the equipment manufacturer following the publication of its H1 results, which it felt showed fundamentals that remain "solid".
However, it also notes that Safran has not raised its guidance for 2024, preferring to remain cautious in view of ongoing tensions in its supply chain.
Nevertheless, given the improved mix of propulsion, aircraft interiors and defense businesses, the broker says it is considering a possible upward revision of the annual operating profit target, but not of the free cash flow (FCF) target.
Deutsche Bank also says it justifies its 'hold' recommendation on the basis of new valuations deemed 'solid'.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
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.
The broker, which has a "hold" recommendation on the stock, said that it had revised its estimates for the equipment manufacturer following the publication of its H1 results, which it felt showed fundamentals that remain "solid".
However, it also notes that Safran has not raised its guidance for 2024, preferring to remain cautious in view of ongoing tensions in its supply chain.
Nevertheless, given the improved mix of propulsion, aircraft interiors and defense businesses, the broker says it is considering a possible upward revision of the annual operating profit target, but not of the free cash flow (FCF) target.
Deutsche Bank also says it justifies its 'hold' recommendation on the basis of new valuations deemed 'solid'.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
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.