Safran: RBC positive ahead of CMD

(CercleFinance.com) - On Tuesday, RBC renewed its 'outperform' rating on Safran shares, along with its E240 target price, two days ahead of the French aerospace equipment manufacturer's CMD.


The Canadian broker believes that market expectations do not seem excessive two days before the event, although it does consider the group's short- and medium-term prospects to be favourable.

In its opinion, the stock should continue to benefit from the success of the historic CFM56 engines, produced in partnership with GE, from its exposure to the spare parts market, and from possible improvements in its business portfolio.

The broker also cites the improved execution and profitability of the 'Leap' program, strong sales in the defense sector, and the possibility of future capital redistributions.

A reorientation of the portfolio and the payment of cash to shareholders would particularly constitute two positive catalysts, RBC says, which however, points out that investors remain skeptical about these two solutions.


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