Safran: The Disconnect Between Fundamentals And Price

Safran SA remains a strong buy, with a 27% upside to a $404.58 price target despite recent underperformance. Q1 revenues grew 18.8% to €8.6 billion, driven by robust LEAP engine and aftermarket sales, and solid defense demand. Guidance for 2026 is reaffirmed, projecting low to mid-teens revenue growth, €6.1–€6.2 billion operating income, and €4.4–€4.6 billion free cash flow.