Equita Sim analyst maintained a Buy rating on Sabaf Technology and Safety today and set a price target of €18.00.
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Equita Sim has given his Buy rating due to a combination of factors tied to Sabaf’s solid operating performance and valuation. The firm highlights that profitability exceeded expectations in FY25, supported by the successful scale-up of new production sites in Mexico and India, efficiency gains, and strong cash generation, all achieved despite still-depressed end-market demand.
Equita Sim ‘s rating is based on the view that Sabaf can grow faster than a weak market in 2026, leveraging recent strategic investments and maintaining resilient margins even in the face of cost pressures. At the current share price, trading multiples are seen as undemanding, and the updated €18 per share target, derived from both discounted cash flow and peer multiples, offers attractive upside that justifies maintaining a Buy stance.