Safran initiated with an Overweight at Morgan Stanley

Morgan Stanley initiated coverage of Safran with an Overweight rating and EUR 184 price target. Amid continued supply chain constraints, the analyst started coverage of the European Aerospace with a preference for aftermarket suppliers. Older aircraft will likely remain in service for longer, generating profitable aftermarket sales not reflected in current through-cycle average valuation multiples, the analyst tells investors in a research note. Safran is the firm’s top pick.