Update shared on04 Sep 2025
Analysts have become increasingly optimistic on Safran due to robust aftermarket demand, improved margin visibility, and strengthened industry fundamentals, resulting in the consensus price target holding steady at €307.62.
Analyst Commentary
- Bullish analysts cite robust aftermarket demand, which is expected to drive stronger-than-anticipated earnings growth through 2030.
- Upward revisions in price targets reflect increased confidence in Safran's ability to sustain superior margins as the civil aerospace cycle strengthens.
- Anticipation of continued positive momentum in services, particularly in engine maintenance and related aftermarket activities, is a key driver behind price upgrades.
- Analysts highlight improved visibility in long-term cash flow generation, supporting higher valuation multiples.
- Bearish and neutral stances are tempered by some concerns about cyclical risks, but consensus is shifting toward optimism due to improving industry fundamentals.
What's in the News
- Bernstein upgraded Safran to Outperform from Market Perform, raising the price target to EUR 370 (from EUR 320), citing strong aftermarket performance driving superior earnings growth through the end of the decade (Periodicals).
- Safran raised its 2025 earnings guidance, now expecting revenue growth in the low teens to exceed EUR 30 billion (Key Developments).
- The company improved its recurring operating income forecast for 2025 by EUR 200 million at midpoint, reflecting better-than-expected performance in its civil aftermarket segment (Key Developments).
- Positive outlook for Safran is being driven by robust aftermarket trends, which are supporting both revenue and profitability upgrades (Periodicals, Key Developments).
- The upgrades from both the company and Bernstein highlight increased confidence in Safran’s earnings trajectory and sector leadership through 2025 and beyond (Periodicals, Key Developments).
Valuation Changes
Summary of Valuation Changes for Safran
- The Consensus Analyst Price Target remained effectively unchanged, at €307.62.
- The Discount Rate for Safran remained effectively unchanged, at 6.96%.
- The Consensus Revenue Growth forecasts for Safran remained effectively unchanged, at 10.2% per annum.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.