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    Safran (ENXTPA:SAF) Reaffirms 2026 Outlook On A Valuation Debate After The Pullback

    Simply Wall St·10/27/2026 01:20:34
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    Safran (ENXTPA:SAF) reaffirmed its full year 2026 earnings guidance on 23 October, sticking with the outlook it upgraded in July and still targeting mid teens revenue growth.

    Safran’s confirmation of its 2026 goals comes after a sharp pullback, with the share price down 18.4% over the past month and 20% over 90 days, even though the three year total shareholder return of 91.4% and five year total shareholder return of 150.1% still point to strong longer term momentum.

    Scan beyond Safran and compare this pullback against 195 high quality undervalued stocks that also combine solid balance sheets with earnings power.

    Bulls see a quality aerospace group on sale after a sharp pullback. Bears see a cyclical peak being priced in. Which side does Safran’s current valuation actually support?

    Most Popular Narrative: 28% Undervalued

    On the latest narrative view, Safran’s fair value of €380.59 sits well above the last close at €274.40. This puts the recent pullback against a materially higher long term cash flow estimate built using a 7.4% discount rate.

    The previously cited momentum in global air travel and narrowbody engine demand remains live, and is now visible in the extended CFM56 aftermarket plateau at about 2,300 to 2,400 shop visits per year through at least 2028 with low retirements and higher workscope and pricing, which supports a higher level of civil spare parts revenue and a sustained contribution to propulsion margins.

    See why 63 investors see Safran as 28% undervalued.

    Result: Fair Value of €380.59 (UNDERVALUED)

    Still, this bullish Safran story can crack if supply chain bottlenecks hit LEAP output again or if heavy capex and R&D fail to earn adequate returns.

    Find out about the key risks to this Safran narrative.

    Next Steps

    If that mix of optimism and caution around Safran leaves you on the fence, move quickly to inspect the underlying data and pressure test the bullish points for yourself. To see what investors view as the key upside drivers, check out the 3 key rewards.

    Looking for more investment ideas beyond Safran?

    If Safran has sharpened your focus on quality, do not stop here. Broadening your watchlist now could be the difference between spotting opportunity early or trailing it later.