Embraer SA (ERJ) Upgraded by Zacks Investment Research to “Buy”
Embraer SA (NYSE:ERJ) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Tuesday. The brokerage presently has a $21.00 price objective on the stock. Zacks Investment Research’s price target points to a potential upside of 5.74% from the stock’s previous close.
According to Zacks, “Embraer continues to lead the 70- to 130-seat commercial jet market. Moreover, Embraer sees more room for growth given the rising air traffic. In its 20-year Market Outlook, the company stated that it expects total market deliveries of 6,400 jets – 2,300 units in the 70- to 90-seat segment and 4,100 units in the 90- to 130-seat segment by 2035. In the near term, the company expects to invest $325 million in product development in 2016 mainly on the new generation of planes. Further the company’s investment plans for product development in 2016 will likely ensure strong demand for its products and drive bottom-line growth. However, Embraer operates in a highly competitive commercial aircraft manufacturing industry, which requires it to invest heavily in technology and performance enhancement to meet growing demand in this industry. Also, the company remains highly exposed to foreign currency fluctuations.”
A number of other research analysts have also recently issued reports on the stock. Cowen and Company upgraded shares of Embraer SA from a “market perform” rating to an “outperform” rating and set a $24.00 target price for the company in a research note on Tuesday. Scotiabank raised shares of Embraer SA from a “sector perform” rating to an “outperform” rating in a report on Friday. Goldman Sachs Group Inc. raised shares of Embraer SA from a “neutral” rating to a “buy” rating and set a $23.00 price target for the company in a report on Wednesday, October 12th. JPMorgan Chase & Co. began coverage on shares of Embraer SA in a report on Thursday, October 6th. They issued an “overweight” rating for the company. Finally, HSBC lowered shares of Embraer SA from a “buy” rating to a “hold” rating and set a $19.00 price target for the company. in a report on Monday, August 1st. Four equities research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. The company presently has a consensus rating of “Buy” and an average price target of $25.14.
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Embraer SA (NYSE:ERJ) traded up 5.25% during mid-day trading on Tuesday, hitting $19.86. The stock had a trading volume of 1,425,764 shares. The company has a 50-day moving average price of $18.33 and a 200 day moving average price of $20.60. The company has a market cap of $14.59 billion, a P/E ratio of 536.76 and a beta of 0.83. Embraer SA has a 1-year low of $17.06 and a 1-year high of $32.50.
Embraer SA (NYSE:ERJ) last posted its earnings results on Friday, July 29th. The company reported ($0.54) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.50 by $1.04. Embraer SA had a net margin of 0.10% and a return on equity of 3.74%. The firm earned $1.37 billion during the quarter, compared to the consensus estimate of $1.44 billion. During the same quarter last year, the firm posted $0.71 EPS. The business’s revenue was down 9.7% on a year-over-year basis. Equities research analysts forecast that Embraer SA will post $0.98 EPS for the current fiscal year.
A number of hedge funds have recently added to or reduced their stakes in ERJ. BlackRock Investment Management LLC acquired a new stake in Embraer SA during the second quarter worth approximately $108,000. JFS Wealth Advisors LLC raised its stake in Embraer SA by 14.4% in the second quarter. JFS Wealth Advisors LLC now owns 4,998 shares of the company’s stock worth $109,000 after buying an additional 631 shares in the last quarter. Macquarie Group Ltd. acquired a new stake in Embraer SA during the second quarter worth approximately $113,000. Commonwealth Bank of Australia raised its stake in Embraer SA by 6.0% in the second quarter. Commonwealth Bank of Australia now owns 7,019 shares of the company’s stock worth $152,000 after buying an additional 400 shares in the last quarter. Finally, Advisor Group Inc. acquired a new stake in Embraer SA during the second quarter worth approximately $169,000. 51.92% of the stock is owned by hedge funds and other institutional investors.
Embraer SA Company Profile
Embraer SA is a Brazil-based company that produces aircraft for commercial and executive aviation, and for defense and security purposes and related services. The Company’s segments include Commercial aviation business, Defense and security business, Executive Jet business and Other. Its Commercial Aviation business segment mainly involves the development, production and sale of commercial jets, and rendering of support services.
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