Safran: Strong Buy As The Market Overlooks Record Profits

Dhierin Bechai Investing Group Leader Follow Summary Safran SA remains a "Strong Buy", with upgraded guidance, record margins, and robust free cash flow amid resilient aftermarket demand. SAFRF's propulsion segment benefits from overlapping CFM56 and LEAP engine maintenance cycles, supporting durable aftermarket growth through 2028. Equipment & Defense segments are expanding, with higher aircraft production, defense contracts, and integration of Collins' actuation business driving mid-teens profitability targets. Despite currency and geopolitical risks, SAFRY trades at a discount to 2027 earnings, offering 21–38% upside with a base case price target of $489. Looking for more investing ideas like this one? Get them exclusively at The Aerospace Forum. Learn More » Wirestock/iStock Editorial via Getty Images Safran SA ( SAFRF ) ( SAFRY ) has gained 9% since my last report , which makes the stock a market performer despite it being a strong buy. The operational performance in the first half This article was written by Dhierin Bechai 24.9K Followers Follow Dhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.