Update shared on 03 Nov 2025
Fair value Increased 2.22%Safran's analyst price target has been revised upward by approximately EUR 7 to EUR 327. Analysts cite increased profit margins, stronger revenue growth, and robust aftermarket trends as supporting factors for the upgrade.
Analyst Commentary
Recent Street research on Safran reflects a predominantly positive outlook, with several analysts revising their price targets upward and reinforcing buy ratings. The commentary below highlights both the optimistic and more cautious factors shaping analysts' perspectives.
Bullish Takeaways- Bullish analysts continue to raise price targets, citing the company's robust execution and improved guidance for 2025. This includes an implied upgrade to EBIT on stable revenue growth.
- Safran's strong positioning in the European aerospace market, especially in the engine aftermarket segment, is expected to drive significant growth and support substantial near-term capital returns.
- Increased profit margins and momentum in aftermarket trends are perceived as key drivers of superior earnings growth, with some forecasts projecting outperformance through the end of the decade.
- Major firms such as JPMorgan and Goldman Sachs reiterate their confidence in Safran's growth trajectory and capital return prospects, even as the broader market remains volatile.
- Some cautious analysts note that recent guidance upgrades were anticipated by the market, resulting in a muted share price response despite improved outlook.
- Uncertainty regarding macroeconomic factors, including concerns over the French budget, continues to weigh on investor sentiment and may constrain near-term valuation upside.
- The positive earnings revision was described by several as less significant than headline numbers suggest, prompting a tempered reaction among more conservative analysts.
What's in the News
- Bernstein upgraded Safran to Outperform from Market Perform and raised the price target to EUR 370 from EUR 320 (Bernstein).
- Analysts expect strength in Safran's aftermarket business to drive "superior" earnings growth through the end of the decade (Bernstein).
Valuation Changes
- Consensus Analyst Price Target: Increased slightly from €320.35 to €327.46, reflecting a modest upgrade in fair value estimates.
- Discount Rate: Decreased marginally from 7.06% to 7.04%, signaling slightly lower perceived risk in Safran's future cash flows.
- Revenue Growth: Rose from 10.34% to 10.73%, indicating improved expectations for topline expansion.
- Net Profit Margin: Increased from 12.56% to 12.63%, suggesting incremental improvement in profitability projections.
- Future P/E: Moved up from 33.79x to 33.97x, implying a modestly higher valuation multiple assigned by analysts.
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.