Safran Shares Drop 2.03% to €280.50: Berenberg Maintains Buy but Trims Target
The share price of the aerospace engine manufacturer fell by 2.03% to €280.50 at midday, in a CAC 40 down by 0.96% at 8,034 points. The movement occurs as Berenberg reaffirms its buy recommendation on the stock, while slightly lowering its target. The session is marked by persistent geopolitical tension in the Middle East and a new surge in Brent crude above $103.
Berenberg Maintains Buy but Lowers Target to €355
Berenberg continues to recommend buying Safran and has reduced its price target from €360 to €355. At the current price of €280.50, the target offers a theoretical potential of about 26%. The stock is trading at 28 times the expected earnings for the current fiscal year, compared to an average of 18.4 times for the European industrial sector, according to consensus data. This valuation premium is based on an expected earnings per share growth of more than 22% year-over-year. As a reminder, the stock had already rebounded by 4% to €283.20 on May 6 after a difficult period related to the publication of first-quarter results. The next key date on the financial calendar is the 2026 general meeting scheduled for May 21, with first-half results to follow on July 28. Over one year, the stock still shows a gain of 13%.
Below All Moving Averages in a Market Weighed Down by Brent
The price has fallen below the 20-day moving average at €288.72 (a gap of -2.85%) and remains distant from the 50-day moving average (€298.93) and the 200-day moving average (€299.67). The RSI at 48 is neutral and does not provide a directional signal. The stock is in the lower part of the Bollinger Bands (39%), above the technical support threshold at €265.20, with a lower boundary at €252.51. The session's context remains unfavorable for European cyclical stocks, with the CAC 40 down nearly 1% and Brent at $103.56 (+2.24%) amid a diplomatic deadlock between Washington and Tehran. Safran is among the significant declines in the Parisian index, ranking 35th out of 40 members. The next key date for the market remains the general meeting on May 21, followed by the semi-annual publication on July 28.
