Citi analyst Stephen Trent maintained a Buy rating on Embraer SA (ERJ – Research Report) yesterday and set a price target of $19.00.
Stephen Trent has given his Buy rating due to a combination of factors related to Embraer SA’s recent business developments and financial prospects. Trent identifies the firm order of 25 E195-E2 jets by Porter Airlines as a significant boost to Embraer’s order backlog, which is a key element in the company’s commercial aircraft production stability. This order, valued at US$2.1 billion based on list prices, reflects a positive outlook on the company’s future revenue and earnings potential.
Despite the possibility that the substantial size of the order may have afforded Porter Airlines a considerable discount, the analyst views the deal as a strategic victory for Embraer, promising to enhance the company’s production throughput. The acquisition of these new jets is expected to be reflected in Embraer’s financial results for the fourth quarter, providing a solid foundation for the company’s performance and justifying the optimistic Buy rating that looks toward an expected share price return of 15.4%.
According to TipRanks, Trent is a 5-star analyst with an average return of 11.4% and a 50.25% success rate. Trent covers the Industrials sector, focusing on stocks such as Delta Air Lines, Embraer SA, and Southwest Airlines.
In another report released on November 20, Bank of America Securities also reiterated a Buy rating on the stock with a $28.00 price target.
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Embraer SA (ERJ) Company Description:
Embraer SA engages in the design, manufacture, and sale of aircraft and its parts for commercial, defense, and executive aviation sectors. It operates through the following segments: Commercial Aviation, Defense and Security, Executive Aviation, and Others. The Commercial Aviation segment is involved in the development, production, and sale of commercial jets; and the provision of support services to regional aviation and aircraft leasing. The Defense and Security segment engages in research, development, production, modification, and support for defense and security aircrafts, as well as other integrated products and solutions including satellites and information and communication systems. The Executive Aviation segment deals with the development, manufacture, and sale of executive jets. The Others segment refers to the supply of structural parts and hydraulic systems and the production of agricultural sprayers. The company was founded by Ozires Silva on August 19, 1969 and is headquartered in Sao Jose dos Campos, Brazil.
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