Deutsche Bank has reaffirmed its 'hold' recommendation on Safran, with an adjusted price target of 210 to 211 euros, ahead of the aircraft engine and equipment manufacturer's first-half results, due on July 31.
The broker forecasts sales growth of 17%, EBIT growth of 36% and FCF of 1.45 billion euros for the period, while it expects forecasts for fiscal 2024 to be at least reconfirmed.
He warns, however, that current forecasts for Leap deliveries up 10-15% could be revised downwards, while after-market growth, currently guided at 'around 20%', could be pushed upwards.
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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%).
SAFRAN 
