Oddo BHF maintains its 'outperform' rating on Safran shares, with a price target raised from €202 to €215.
During a road show, the company indicated that new Leap deliveries in FY24 should come out close to the bottom of the +20% to +25% range, due to the difficulties encountered by Boeing", reports the analyst.
Nevertheless, Safran believes that the adjustment of the Cabin activity's cost base is almost complete, and that the increase in long-haul production rates could enable a gradual increase in margins.
Lastly, Safran has reiterated its intention to distribute 40% of net income in the form of dividends, and will relaunch its share buyback program to offset the dilution of the 2028 OCEANE bond, followed by the launch of a E1 billion buyback program for cancellations, once the new E300 ceiling has been approved by the AGM.
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Safran is a high technology international group, a leading equipment provider in the Aerospace and Defense markets. The group specializes in the design, manufacturing, and marketing of equipment and systems of high technology mechanical and electronic equipment. Net sales break down by product family as follows:
- aeronautic and space propulsion systems (51.2%): helicopter motors (No. 1 worldwide), civil and military airplanes motors, systems for space lancers and missiles, turboreactors for drone targets, etc.;
- aircraft equipment, defense systems and aerosystems (38%): airplane engine pods, landing gear, braking systems, electric wiring systems, etc. Safran also offers on board aircraft systems and equipment (primarily evacuation slides, emergency arresting systems, protective parachutes and oxygen systems, electrical power management systems, control systems, water and waste management systems and connectivity systems) and defense and security systems (helicopter flight controls, fingerprint-based biometric identification systems (No. 1 worldwide), inertial systems, optronic systems, tactical drone systems, etc.);
- aircraft interiors (10.7%): cabin interiors and seats;
- other (0.1%).
Net sales are distributed geographically as follows: France (19.4%), Europe (24%), the Americas (34.8%), Asia and Oceania (13.2%), Africa and the Middle East (8.6%).
SAFRAN 
