Safran Surges 2.13% Following Two Target Upgrades in Two Days
Safran's stock closed up 2.13% at 325.80 euros after consecutive target upgrades by Deutsche Bank and Rothschild & Co Redburn, setting their respective targets at 348 and 360 euros. The stock has shown an annual performance of 47.82%, supported by the favorable dynamics of the aerospace sector and the upcoming annual results on February 13.
Market Response and Analyst Support
Safran's stock closed the session on Tuesday, January 13, at 325.80 euros, marking a rise of 2.13% from the previous day when it was quoted at 319 euros. This rebound occurs in a context of significant support from analysts. Deutsche Bank raised its price target from 325 to 348 euros, while maintaining its buy recommendation on the stock. This revision came a day after Rothschild & Co Redburn, which raised its target from 325 to 360 euros on January 12, also maintaining a buy recommendation. These successive adjustments reflect the analysts' confidence in the trajectory of the aerospace equipment manufacturer and engine maker, which benefits from strong demand for its LEAP engines and a favorable aftermarket dynamic. Trading volumes remained moderate with 0.13% of capital traded. Over seven days, the stock now shows a gain of 4.16%, while over a year, the performance reaches 47.82%, confirming the strength of the underlying trend. The RSI is at 67, indicating that the stock is approaching the overbought zone without actually reaching it. This level reflects a sustained bullish momentum but remains below the 70 threshold that would indicate technical overheating. The price is now well above its 50-day moving average at 300.62 euros, and 200-day average at 277.90 euros, reinforcing the bullish structure in the medium and long term. The crossing of the resistance threshold at 322.60 euros, which occurred last Wednesday, now paves the way for new highs. The support threshold remains at 286.10 euros, providing a safety net in case of correction.
Aerospace Sector Growth Prospects
For aerospace stocks like Safran, the civil segment could become a growth engine, similar to what happened with American sector stocks in 2025. This analysis supports the backing of major investment banks on the matter. Earlier, Bernstein had raised its target from 370 to 380 euros on January 6, and UBS had increased it from 315 to 330 euros on January 9, signaling a broadly positive consensus. These revisions reflect the robust prospects of the equipment manufacturer, driven by the ramp-up of LEAP engines, recent contracts won particularly in India and the Middle East, and the strength of the aftermarket segment, which represents the most profitable part of the business. The MACD, with a line at 6.10 above the signal line at 3.96 and a positive histogram at 2.14, confirms that the setup remains bullish in the medium term. This technical configuration, combined with a supportive recommendation environment, reinforces the positive momentum of the stock. The financial calendar anticipates the publication of the annual results for 2025 on February 13. Investors will particularly scrutinize the group's ability to confirm its organic growth and cash flow generation targets, in an aerospace sector that continues its post-Covid recovery phase and ramp-up. The one-month volatility stands at 6.37%, showing recent progress without erratic movements. With a controlled RSI and a bullish MACD, the stock has room to maneuver before a possible technical pause.