DB upbeat on European aerospace and defence; upgrades Airbus, Safran
** Deutsche Bank maintains a positive outlook on European aerospace and defence into 2025, citing strong demand, easing supply chain challenges and rising geopolitical pressures that drive up defence spending across the continent
** It upgrades Airbus AIR.PA to "buy" from "hold" and raises its PT by 19% to EUR 185, reflecting improved visibility on future deliveries and as market expectations for 2025-2026 reset to more conservative levels
** It raises Safran SAF.PA "buy" from "hold" with a nearly 16% higher PT at EUR 243, saying the jet engine maker demonstrates strong FCF generation and confidence with its EUR 5 bln share buyback plan
** DB also points to Safran's history of "under-promising and over-delivering" as a long-term equity compounder
** Defence stocks remain robust amid geopolitical risks, it says, highlighting Leonardo LDOF.MI and BAE Systems BAES.L (both "buy") for their upside potential from strong order momentum and improved operational performance
Reporting by Johan Bodinier
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