Update shared on 18 Nov 2025
Fair value Increased 0.37%Analysts have modestly raised their fair value estimate for Safran to €328.67. They cite improved revenue growth expectations and continued optimism about the company’s aftermarket earnings resilience.
Analyst Commentary
Recent research notes and target price changes reflect both confidence in Safran’s growth trajectory as well as some caution over external factors and execution. Analysts remain constructive on the company’s earnings outlook and market positioning.
Bullish Takeaways- Bullish analysts continue to raise price targets, in some cases increasing expectations by significant margins. This signals sustained optimism in Safran’s market valuation.
- Analysts point to the company’s strong aftermarket revenues and upgraded profit guidance as key drivers for expected superior earnings growth through the decade.
- There is consensus that Safran’s position in the European aerospace sector, amid recovering travel demand and favorable supply conditions, supports the potential for further capital returns.
- Some notes emphasize that actual earnings beats may be understated. This suggests upside potential for both revenue growth and profitability even when share reactions are muted.
- Some analysts note the company’s recent guidance upgrade was relatively modest and largely anticipated by the market, which may limit the immediate upward impact on the share price.
- Uncertainty around broader macroeconomic issues, such as the French budget, has weighed on investor sentiment despite otherwise strong fundamentals.
- While aftermarket strength is seen as a positive, there remains caution regarding the sustainability of profit growth amid competitive pressures and market volatility.
What's in the News
- Bernstein upgraded Safran to Outperform from Market Perform and raised the price target to EUR 370, citing strong aftermarket performance as a driver for superior earnings growth through the decade (Bernstein).
Valuation Changes
- The fair value estimate has increased slightly from €327.46 to €328.67.
- The discount rate has declined modestly from 7.04% to 6.85%.
- The revenue growth forecast has risen marginally from 10.73% to 10.82%.
- The net profit margin has edged down from 12.63% to 12.60%.
- The future P/E ratio has decreased fractionally from 33.97x to 33.91x.
Disclaimer
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