Bank of America Securities analyst Ronald Epstein has maintained their bullish stance on ERJ stock, giving a Buy rating on November 29.
Ronald Epstein’s Buy rating for Embraer SA is predicated on a mix of strong recent business performance and favorable market positioning. The company’s recent $2.1 billion deal with Porter Airlines, which includes an order for 25 E195-E2 jets, is a significant contributor to this optimistic outlook. This deal not only bolsters Embraer’s fourth-quarter backlog but also reflects a vote of confidence from Porter Airlines, with their CEO expressing satisfaction with the aircraft’s performance and versatility.
The agreement also hints at further potential in an industry where competitors like Boeing and Airbus have filled delivery slots for several years in advance, making Embraer’s aircraft an attractive alternative. Epstein sees this deal as reflective of a broader trend, with the E195-E2 model poised for growing demand amidst an increased focus on narrowbody aircraft. The substantial nature of this order, representing a considerable portion of the company’s total orders for the year and doubling the orders for the E195 model to date, underpins Epstein’s confidence in Embraer’s stock and justifies the Buy rating.
Epstein covers the Industrials sector, focusing on stocks such as Boeing, Aercap Holdings, and Raytheon Technologies. According to TipRanks, Epstein has an average return of 4.9% and a 59.31% success rate on recommended stocks.
In another report released on November 29, Citi also maintained a Buy rating on the stock with a $19.00 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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