On Wednesday, Deutsche Bank (ETR:DBKGn) maintained its Hold rating on Safran SA (EPA:SAF:FP) (OTC: SAFRF) while slightly increasing the price target from €210.00 to €211.00 for the shares. The firm anticipates Safran to report its first-half 2024 results on July 31, with expectations of a 17% rise in sales, a 36% increase in EBIT, and free cash flow reaching €1.45 billion.
The analyst from Deutsche Bank predicts that the company will at least reconfirm its full-year 2024 guidance. However, there is a possibility that the current forecast for Leap engine deliveries, which is projected to grow by 10-15%, may see a downward revision.
On the other hand, there could be a positive adjustment in the aftermarket growth expectations. Safran's current guidance is "around 20%", but this figure might be raised based on the upcoming financial results.
Investors and stakeholders are now looking forward to the end of July when Safran is slated to disclose its performance for the first half of the year. The slight adjustment in the price target reflects a nuanced view of the company's prospects leading up to the announcement.
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