Panmure Liberum has downgraded its recommendation on Safran from "buy" to "hold," while raising its one-year price target from 205 to 230 euros, and its three-year target from 260 to 285 euros, following a revision of its forecasts for the French aerospace engine manufacturer and equipment supplier.
"Safran is entering a relatively calm period following the mid-cycle recovery — there are cross-currents beneath the surface, but they are expected to offer moderate growth, slowing in the short term for the foreseeable future," the broker stated.
However, Panmure Liberum warns that this smooth-sailing phase cannot last indefinitely, and that a recession of some severity will inevitably follow, though it cannot predict when or how severe it might be.
In the meantime, the broker has revised its forecasts for the French group, increasing expected EBIT by around 5% through 2028, and has extended its projection horizon to 2032 for comparison with the rest of its coverage.
