Update shared on 02 Dec 2025
Safran's analyst price target has increased to EUR 360 from EUR 320, as analysts cite stronger than expected profit generation and resilience within the European aerospace sector.
Analyst Commentary
Recent street research highlights a generally optimistic stance among major financial institutions, supported by a series of upward price target revisions for Safran. These changes reflect analysts' views on the company's ongoing resiliency, profit growth, and sector momentum within European aerospace markets. However, expert commentary also notes areas of caution and factors that could temper investor enthusiasm in the near term.
Bullish Takeaways- Bullish analysts point to Safran’s continued profit generation and resilient business model as drivers behind repeated price target increases.
- Opportunities in the European engine aftermarket and expectations for significant near-term capital returns support a constructive outlook for sector growth.
- Major firms note that implied EBIT upgrades are stronger than initially indicated by headline guidance adjustments, which signals robust underlying operational performance.
- The ongoing recovery in European aerospace, along with travel demand outstripping supply, is expected to further boost Safran’s revenues and long-term growth trajectory.
- Despite the upward revisions, analysts observe that the company’s 2025 guidance increase was modest and largely anticipated by the market, resulting in a muted share price reaction.
- Caution remains regarding broader macroeconomic uncertainties, particularly relating to French budgetary concerns, which could weigh on sector sentiment.
- Some experts highlight the risk that future profitability improvements may already be reflected in current valuations, which tempers further upside potential in the near term.
- Execution risk persists as Safran navigates evolving industry conditions, including volatility in the global aerospace supply chain and market expectations for rapid operational gains.
Valuation Changes
- Fair Value remains unchanged at €328.67, indicating stability in the underlying valuation model.
- Discount Rate has risen slightly from 6.85% to 6.86%, reflecting a marginal increase in perceived risk or required return.
- Revenue Growth rate remains steady at 10.82%, suggesting continued confidence in Safran's sales expansion outlook.
- Net Profit Margin is unchanged at 12.60%, implying no revision to profitability expectations at this stage.
- Future P/E ratio has edged higher from 33.91x to 33.92x, marking a minimal increase in projected earnings multiples.
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