Safran: RBC positive ahead of investor day

(CercleFinance.com) - On Tuesday, RBC renewed its 'outperform' rating and 240 euro price target on Safran, two days ahead of the French aerospace equipment manufacturer's investor day.


In a note, the Canadian broker believes that market expectations do not seem too high two days ahead of the event, although it does consider the Group's short- and medium-term prospects to be favorable.

In his view, the stock should continue to benefit from the success of the historic CFM56 engines, produced in partnership with GE, from its exposure to the spare parts market, and from possible improvements in its business portfolio.

The broker also cites the improved execution and profitability of the 'Leap' program, strong sales in the defense sector, and the possibility of future capital redistributions.

A reorientation of the portfolio and the payment of cash to shareholders would in particular constitute two positive catalysts, stresses RBC, which points out, however, that investors remain skeptical about these two solutions.

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