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Embraer (NYSE:ERJ) on Tuesday was downgraded to Neutral from a previous investment rating of Buy among analysts at financial-services firm UBS Banco do Brasil. The said the world’s third-biggest maker of commercial planes is more fairly priced after recent gains.
Shares of Embraer (ERJ) have risen 46% in the past month.
“We expect the company to meet the low end of the guidance for deliveries in 2024 as we see supply-chain and engine issues as constraints for higher deliveries growth,” Alberto Valerio, analyst at UBS BB, said in a March 25 report. “Currently we believe the risk is evenly distributed to the upside and downside.”
UBS BB raised its price target on Embraer (ERJ) to $28.50 per American depository receipt from $21 per ADR, based on an estimated enterprise value that’s 7.6 times earnings before interest, taxes, depreciation and amortization for 2025.