SAFRAN : Bernstein upgrades its opinion to 'outperform
January 06, 2023 at 07:56 am EST
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On Friday, Bernstein raised its opinion on Safran from 'market perform' to 'outperform', with an improved price target from 118 to 142 euros.
The research firm - which makes the French equipment manufacturer its preferred choice in the global aerospace and defense market for the new year - justifies its optimism by the more favorable outlook for the civil aviation spare parts segment.
In particular, the analyst expects strong growth in replacement parts for CFM56 engines, thanks to the gradual reopening of the Chinese economy.
Safran's aircraft equipment and cabin interiors businesses should also benefit from the strong momentum in wide-body aircraft, he points out in his note.
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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%).
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