Safran: Oddo raises target price
(CercleFinance.com) - Oddo BHF reiterates its "neutral" rating on the Safran share, having reduced its corresponding target price from 120 euros to 116 euros, in the wake of a sharp reduction in its short-term earnings estimates for the high-tech aeronautics and security group.
The broker explains that this includes a sharper than initially expected drop in volumes in equipment and interiors, a more gradual recovery in after-sales in propulsion and the potential dilution of the convertible bonds (OCEANEs).
The broker understands that the consensus is now adjusted on a target that can be considered as cautious (...), although it prefers to wait for the upturn in airline bookings, which will be the main catalyst for an acceleration of after-sales business.
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