Safran Forecasts Revised Higher, PT Lifted to EU69/Shr: Natixis
Safran price target raised to EU69 (from EU66) to factor in Zodiac Aerospace deal, and the assumption that LEAP 1B will enter service as planned, Natixis (neutral) says in note.
- After a modest stock performance in 2017 vs. civil aerospace sector, Safran’s valuation looks more appealing
- 2018/2020 estimates raised by 4% to 5%
- Raise 2018 forecasts to reflect a more successful LEAP transition than previously thought, continued progress by the equipment division, more effective dollar hedging
- 2018 Ebita estimate lifted to EU2.650b from EU2.551b
- Dilutive impact resulting from the LEAP should peak in 2018, and negative bridge is to narrow in 2018 with loss per engine limited to an estimated EU600k