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Strong Growth Prospects and Aftermarket Performance Support Buy Rating for SAFRAN SA

Strong Growth Prospects and Aftermarket Performance Support Buy Rating for SAFRAN SA

Jefferies analyst Chloe Lemaire has maintained their bullish stance on 0IU8 stock, giving a Buy rating on July 2.

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Chloe Lemaire’s rating is based on several positive indicators for SAFRAN SA. The company is expected to report strong results for the first half of the year, with significant growth in both sales and earnings before interest and taxes (EBIT). Specifically, there is an anticipated 13% increase in sales and a 21% rise in EBIT, driven by expanding margins in the Propulsion and Interiors segments.
Moreover, the aftermarket trends are particularly robust, with Propulsion spare parts and Services projected to grow by 20% and 18%, respectively. This strong performance in the aftermarket sector is likely to exert upward pressure on the company’s guidance. Despite facing some foreign exchange challenges in the second quarter, the company is expected to achieve a free cash flow of €1.7 billion, including contributions from its operations in India. These factors collectively support the Buy rating given by Chloe Lemaire.

In another report released on July 2, RBC Capital also maintained a Buy rating on the stock with a €285.00 price target.

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