Safran: UBS still on hold, same TP
(CercleFinance.com) - The analyst believes that 2025 and 2028 targets are more conservative than expected.
Following this announcement, UBS maintains its Neutral rating on the stock, leaving its target price unchanged at E200 (cp: E213, +0.5%).
We believe that investors were prepared to accept a certain degree of conservatism today, but that these targets are nonetheless below expectations, the broker says.
For 2025, Safran expects sales growth of around 10%, operating income before non-recurring items of between E4.7bn and E4.8bn, and FCF of E2.8bn to E3bn.
In the longer term, the group expects sales growth of 7% to 9% p.a. over 2024-28, operating income before non-recurring items of E6bn to E6.5bn by 2028, and cumulative free cash flow generation of E15bn to E17bn over 2024-28.
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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.
Following this announcement, UBS maintains its Neutral rating on the stock, leaving its target price unchanged at E200 (cp: E213, +0.5%).
We believe that investors were prepared to accept a certain degree of conservatism today, but that these targets are nonetheless below expectations, the broker says.
For 2025, Safran expects sales growth of around 10%, operating income before non-recurring items of between E4.7bn and E4.8bn, and FCF of E2.8bn to E3bn.
In the longer term, the group expects sales growth of 7% to 9% p.a. over 2024-28, operating income before non-recurring items of E6bn to E6.5bn by 2028, and cumulative free cash flow generation of E15bn to E17bn over 2024-28.
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.