Safran Remains A Top Aerospace Stock In 2025, And I Will Buy More

(7min)

Summary

  • Safran SA's stock has declined 5% since September, but it remains a strong buy due to its involvement in major aircraft programs and future growth potential.
  • Opportunities include higher production rates for Boeing 737 MAX and Airbus A320neo, better cost amortization, and increased shipset value from Collins Aerospace.
  • Risks involve aerospace supply chain issues, inflation, approval delays for a $1.8 billion acquisition, and challenges in the seat business from the Zodiac Aerospace acquisition.
  • Despite downward revisions in earnings and free cash flow estimates, SAFRF stock is undervalued with a 30% upside potential by 2025, making it a compelling buy.
  • Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More »

Ryanair Boeing 737 MAX 8200 CFM International LEAP-1B engine

pablorebo1984

In September, I covered Safran SA (OTCPK:SAFRF) (SAFRY) with a buy rating. Since then, the stock has lost 5% of its value. I do believe that Safran is one of the best stocks that one could own when Boeing (

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This article was written by

19.41K Followers

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 a beneficial long position in the shares of SAFRF, BA, EADSF either through stock ownership, options, or other derivatives. 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.

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