Safran: Jefferies still on 'underperform' but ups target

(CercleFinance.com) - Jefferies reiterates its "underperform" rating on the Safran share, although has raised its target price from 95 euros to 120 euros, saying that "Given the current geopolitical, economic, and environmental backdrops, some caution is warranted".


"We understand why Safran is regarded as reliable and predictable and so of high
quality, but our analysis and our related estimates do not support that perception," the broker says, which fears volatility in Safran's operating profit and free cash flow.

In its note on the aeronautical equipment manufacturer, the broker also considers that "environmental concerns have introduced a degree of uncertainty that we believe will bear mainly on short and medium-haul travel."


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