How Bell 505’s 100 Percent SAF Test Milestone at Safran (ENXTPA:SAF) Has Changed Its Investment Story

• Bell recently announced that its Bell 505 test aircraft, powered by Safran Helicopter Engines, completed over 700 hours of testing on a blend of conventional jet fuel and Sustainable Aviation Fuel (SAF).
• This milestone highlights Safran's near-term readiness for engines that can operate on 100% drop-in SAF, underscoring the company's growing leadership in sustainable aviation technologies.
• We’ll explore how Safran’s progress toward certifying 100% SAF-compatible engines could influence its long-term investment outlook and narrative.

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Safran Investment Narrative Recap

To be a shareholder in Safran, you need to believe that sustained investment in low-emission and sustainable engine technologies will keep the company at the forefront of aerospace innovation, supporting resilient growth and margin expansion. The Bell 505 SAF test milestone demonstrates progress on ESG initiatives, but for now this achievement does not appear to alter the most important catalyst, strong global air travel demand, or mitigate the biggest short-term risk tied to supply chain disruptions.

One recent announcement that connects closely with this news is Safran's raised guidance for 2025, which forecasts revenue growth in the low teens and an increase in projected operating income. This forward-looking stance supports the view that the company's technology efforts, such as SAF compatibility, may reinforce its competitive position amid rising demand, even as supply chain and integration risks persist.

Yet, unlike the optimism around sustainable engine progress, investors also need to consider the ongoing exposure to supply chain risks...

Read the full narrative on Safran (it's free!)

Safran's outlook anticipates €39.3 billion in revenue and €5.0 billion in earnings by 2028. This projection is based on a 10.2% annual revenue growth rate and an increase in earnings of €0.7 billion from the current €4.3 billion.

Uncover how Safran's forecasts yield a €328.67 fair value, a 13% upside to its current price.

Exploring Other Perspectives

Six community valuations for Safran range from €231.86 to €328.67 per share, illustrating wide differences among Simply Wall St Community members. While many focus on growth drivers like sustainable aviation, ongoing supply chain pressures could weigh on returns, making it valuable to review a broad mix of investor views.

Explore 6 other fair value estimates on Safran - why the stock might be worth as much as 13% more than the current price!

Build Your Own Safran Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Safran research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Safran research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Safran's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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