Update shared on20 Oct 2025
Fair value Increased 2.86%The analyst price target for Safran has been raised from €311.43 to €320.35. Analysts highlight improved strength in the European aerospace market and sustained aftermarket demand, which support positive earnings expectations.
Analyst Commentary
Analyst perspectives on Safran have converged around a notably positive outlook, with several street research updates pointing to opportunities and some ongoing risks for the company’s growth and valuation.
Bullish Takeaways- Bullish analysts highlight an improving European aerospace market, noting that travel demand is currently outstripping available supply. This supports sustained aftermarket activity.
- Capital returns are expected to remain robust in the near term. The company is well positioned to benefit from favorable market conditions in engine aftermarket services.
- Recent price target increases reflect expectations for superior earnings growth driven by aftermarket strength and enhanced operational execution.
- Major firms have initiated or affirmed positive coverage, underlining confidence in Safran’s ability to manage volatility and maintain momentum through the end of the decade.
- Some analysts express caution regarding the potential for elevated market volatility, which could impact execution on aggressive growth and capital return targets.
- Safran’s valuation has risen meaningfully following a string of upward price target revisions. This could limit the magnitude of future outperformance if growth projections do not materialize.
- While the company is benefiting from supportive demand trends, there are still concerns that supply constraints or unexpected macro-economic shifts could temper the favorable environment.
What's in the News
- Bernstein upgraded Safran to Outperform from Market Perform and increased its price target to EUR 370 from EUR 320, citing strength in the aftermarket supporting superior earnings growth (Periodical).
- Safran SA raised its earnings guidance for 2025, projecting revenue growth in the low teens and recurring operating income improved by EUR 200 million at the midpoint, driven by stronger performance in the civil aftermarket (Key Development).
- Between January 1 and June 30, 2025, Safran completed the repurchase of 2,878,501 shares for €707 million under its buyback program, representing 0.69% of the company (Key Development).
Valuation Changes
- Consensus Analyst Price Target has risen from €311.43 to €320.35, reflecting a positive adjustment in projected fair value.
- Discount Rate increased marginally to 7.06% from 7.01%, indicating a modest shift in perceived risk or return expectations.
- Revenue Growth estimate has ticked up slightly to 10.34% from 10.29%, suggesting that expected sales momentum remains strong.
- Net Profit Margin forecast edged down marginally to 12.56% from 12.57%, indicating largely stable profitability expectations.
- Future P/E Ratio has increased to 33.79x from 32.82x, pointing to a higher valuation multiple applied to future earnings.
Disclaimer
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