Safran Drops; Natixis Cuts to Neutral on ‘Lacklustre’ Potential

Safran falls as much as 2.3%, in 2nd day of declines, with vol. trading at 26% of 3-month daily avg.

  • Among leading decliners in Stoxx 600
  • Natixis cuts Safran to neutral, PT to EU66 from EU74; sees next few years as “rather lacklustre” compared to “remarkable” gains since 2009, and more risk-prone
    • 2015 estimated P/E posts premium of 22% on historical P/E of 14.5x and 21% on 2015 EV/Ebit of 10.4x
    • Sees future hurt by financial consequences of technical issues including future for LEAP 1B engine and its platform
  • NOTE: Of 25 ratings, Safran has 16 buys and 9 holds; avg. PT EU70 implies ~7% upside: Bloomberg data

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