Safran: share price rises, Deutsche Bank confident
April 12, 2024 at 05:39 am EDT
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Safran shares posted one of the biggest gains on the CAC 40 on Friday morning on the Paris Bourse, buoyed by a favorable note from Deutsche Bank.
Shortly before 11:30 a.m., the stock gained 1.8%, while the CAC advanced by 0.9% at the same time. The European sector index, STOXX Europe Aerospace & Defense, was up by 1.7%.
In a study published this morning, analysts at the investment bank stated that they had raised their price target from 190 to 208 euros in anticipation of "solid business momentum" in the first quarter.
With the aerospace equipment supplier due to publish its quarterly sales figures on April 26, DB expects sales growth of 17%, with a positive contribution from all business lines.
The company is also expected to confirm its full-year targets, says the research department, which anticipates encouraging comments on both the spare parts market and operating margin.
Deutsche - which remains 'Hold' - justifies its target increase by the increased contribution of GE Aerospace's higher valuation in the propulsion businesses.
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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 
