Safran: Oddo maintains buy rating
(CercleFinance.com) - Oddo reiterates its Outperform rating on the Safran stock, along with its target price of 135 euros.
For the analyst, Safran has high pricing power and its USD hedge portfolio rate is improving.
While the supplier chain remains under pressure, particularly in the US, the company reports no supply difficulties for spare parts, which greatly limits the impact of these tensions in the near term.
The analyst also notes that input inflation is accelerating. Negotiations with the unions will begin with a likely return of the profit-sharing/bonus for French employees (E265m in 2019 vs E24m in 2021). However, Safran has a lever to counter this inflation with the possibility of modulating the return of certain costs.
Finally, Oddo continues, Safran has a high degree of flexibility on its balance sheet. Analysts understand that a share buyback program is a consensus for management with an announcement that could take place by early 2023 at the latest.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
For the analyst, Safran has high pricing power and its USD hedge portfolio rate is improving.
While the supplier chain remains under pressure, particularly in the US, the company reports no supply difficulties for spare parts, which greatly limits the impact of these tensions in the near term.
The analyst also notes that input inflation is accelerating. Negotiations with the unions will begin with a likely return of the profit-sharing/bonus for French employees (E265m in 2019 vs E24m in 2021). However, Safran has a lever to counter this inflation with the possibility of modulating the return of certain costs.
Finally, Oddo continues, Safran has a high degree of flexibility on its balance sheet. Analysts understand that a share buyback program is a consensus for management with an announcement that could take place by early 2023 at the latest.
Copyright (c) 2022 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.