Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Goldman Sachs initiated coverage on Safran SA (EPA:SAF) with a Buy rating and a price target of EUR340.00 on Friday.
The investment bank cited anticipated sustained strength in Safran’s Propulsion business as a key driver for its positive outlook, pointing to increased servicing needs for legacy engines and growing profitability in the LEAP engine aftermarket.
Goldman Sachs’ analysis of CFM56 shop visits, using flight cycle data, indicates that shop visits will remain elevated at or above FY25 levels through FY27E, supporting strong business performance.
The firm projects Safran’s Propulsion division will achieve a low-double-digit EBIT CAGR through FY24-28E, exceeding management’s guidance of mid-single-digit to high-single-digit growth, due to sustained pricing power and growing LEAP workscope.
Goldman Sachs also noted that Safran’s Interiors business is expected to return to normalized margins, providing an additional tailwind to growth over the mid-term, with the price target implying approximately 20% upside potential.
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