(News Bulletin 247) – Oddo BHF reiterates its ‘outperformance’ opinion on Safran with a price target maintained at 151 euros, seeing in the acquisition of the actuators and flight controls business (ATA 27) from Collins Aerospace, ‘a clear strategic interest in the medium term’.
“However, the valuation is, in our view, high at 14 times 2024 EBITDA before cost synergies compared to 11.6 times for Safran currently, and will require integration costs of 120-130 million dollars”, he underlines however.
As the acquisition should be fully financed using available cash, the design office is modeling a slight accretion of around 0.5% in 2025, the first full year of consolidation.
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