(News Bulletin 247) – Bank of America renewed its buy recommendation on Safran on Monday following the announcement last week of the proposed acquisition of Collins’ actuators and flight controls business.
In a research note, the analyst points out that the operation should enable the French aeronautical equipment manufacturer to strengthen its position in hydraulic and electromechanical actuation.
“This should allow it to position itself favorably with a view to next-generation aviation,” explains BofA.
Despite this operation, the intermediary said it still expects the group to launch a share buyback program when it publishes its half-year results, scheduled for Thursday.
BofA says it expects an envelope of one billion euros devoted to these share buybacks in 2023, before the release of two billion euros respectively for the 2024 and 2025 financial years.
Its target price of 201 euros shows an upside potential of 41.8%.
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