Safran's share price was one of the biggest decliners in the CAC 40 index on Friday, penalized by a downgrading of Deutsche Bank's recommendation to 'hold' from 'buy'.
At 10:30 a.m., the aircraft equipment manufacturer's share price was down 0.3%, while the CAC was up 0.9%.
In a note, Deutsche Bank analysts explain that they see limited upside potential (in the order of +5%) at a time when market forecasts for the 2024-2025 period have been revised downwards due to weakening economic conditions.
Their price target has therefore been reduced from €176 to €170.
"Safran remains a solid investment case, with a convincing long-term outlook", the research department acknowledges.
In its view, the next catalysts could come from the publication, next February, of the 2023 annual results or, more likely, from the next investor meeting scheduled for the end of 2024.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
Safran is a high technology international group, a leading equipment provider in the Aerospace and Defense markets. The group specializes in the design, manufacturing, and marketing of equipment and systems of high technology mechanical and electronic equipment. Net sales break down by product family as follows:
- aeronautic and space propulsion systems (51.2%): helicopter motors (No. 1 worldwide), civil and military airplanes motors, systems for space lancers and missiles, turboreactors for drone targets, etc.;
- aircraft equipment, defense systems and aerosystems (38%): airplane engine pods, landing gear, braking systems, electric wiring systems, etc. Safran also offers on board aircraft systems and equipment (primarily evacuation slides, emergency arresting systems, protective parachutes and oxygen systems, electrical power management systems, control systems, water and waste management systems and connectivity systems) and defense and security systems (helicopter flight controls, fingerprint-based biometric identification systems (No. 1 worldwide), inertial systems, optronic systems, tactical drone systems, etc.);
- aircraft interiors (10.7%): cabin interiors and seats;
- other (0.1%).
Net sales are distributed geographically as follows: France (19.4%), Europe (24%), the Americas (34.8%), Asia and Oceania (13.2%), Africa and the Middle East (8.6%).
SAFRAN 
