Zacks Reiterates “Neutral” Rating for Embraer SA (ERJ)
Embraer SA (NYSE:ERJ)‘s stock had its “neutral” rating restated by Zacks in a research report issued on Thursday. They currently have a $41.00 price target on the stock. Zacks‘s price target would suggest a potential upside of 4.99% from the stock’s previous close.
Zacks’ analyst wrote, “Embraer SA’s earnings in the second quarter 2014 surpassed the Zacks Consensus Estimate and the year-ago earnings, primarily due to strong defense and executive jet deliveries. We believe that Embraer’s strong financial profile, continuous focus on research and development activities and disciplined investment to strengthen existing operations are expected to act as key growth drivers. In addition, the MoU signed with Petrobras to render technical know-how to the oil and gas industry would boost its earnings capability going forward. However, we remain concerned about currency risk, the highly competitive industry and inherent operational risks in the airline manufacturing industry. Thus, we maintain our Neutral recommendation on the stock.”
ERJ has been the subject of a number of other recent research reports. Analysts at Deutsche Bank raised their price target on shares of Embraer SA from $40.00 to $44.00 in a research note on Monday, June 23rd. They now have a “buy” rating on the stock. Analysts at Morgan Stanley reiterated an “overweight” rating on shares of Embraer SA in a research note on Tuesday, June 3rd. They now have a $41.10 price target on the stock. One analyst has rated the stock with a sell rating, four have assigned a hold rating and four have assigned a buy rating to the company. The company presently has an average rating of “Hold” and a consensus price target of $41.02.
Embraer SA (NYSE:ERJ) traded down 0.58% on Thursday, hitting $38.825. 305,268 shares of the company’s stock traded hands. Embraer SA has a 52-week low of $28.31 and a 52-week high of $40.37. The stock has a 50-day moving average of $38.05 and a 200-day moving average of $35.40. The company has a market cap of $7.122 billion and a price-to-earnings ratio of 12.60.
Embraer SA (NYSE:ERJ) last announced its earnings results on Thursday, July 31st. The company reported $0.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.63 by $0.07. The company had revenue of $1.76 billion for the quarter, compared to the consensus estimate of $1.68 billion. The company’s revenue for the quarter was up 13.1% on a year-over-year basis. Analysts expect that Embraer SA will post $2.52 EPS for the current fiscal year.
Embraer SA is a Brazil-based holding company primarily engaged in the manufacture of aircrafts. The Company’s business activities are divided into three business segments: Commercial Aviation; Defense and Security Business, and Executive Aviation.
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