Zacks Investment Research Upgrades Embraer SA (ERJ) 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 firm presently has a $21.00 price target on the stock. Zacks Investment Research’s price target indicates a potential upside of 11.29% from the company’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.”
Several other analysts have also recently weighed in on the company. Goldman Sachs Group Inc. raised Embraer SA from a “neutral” rating to a “buy” rating and set a $23.00 price objective for the company in a report on Wednesday, October 12th. JPMorgan Chase & Co. initiated coverage on Embraer SA in a report on Thursday, October 6th. They set an “overweight” rating for the company. HSBC cut Embraer SA from a “buy” rating to a “hold” rating and set a $19.00 price objective for the company. in a report on Monday, August 1st. Scotiabank raised Embraer SA from a “sector perform” rating to an “outperform” rating in a report on Friday. Finally, Drexel Hamilton reissued a “hold” rating on shares of Embraer SA in a report on Tuesday, July 12th. Four investment analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. The stock presently has an average rating of “Buy” and an average target price of $25.86.
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Embraer SA (NYSE:ERJ) traded up 4.40% during mid-day trading on Tuesday, hitting $19.70. 712,753 shares of the company traded hands. The company has a market capitalization of $14.47 billion, a price-to-earnings ratio of 532.43 and a beta of 0.83. The company’s 50-day moving average price is $18.29 and its 200 day moving average price is $20.60. Embraer SA has a one year low of $17.06 and a one year high of $32.50.
Embraer SA (NYSE:ERJ) last announced its quarterly earnings data on Friday, July 29th. The company reported ($0.54) earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.50 by $1.04. The firm had revenue of $1.37 billion for the quarter, compared to the consensus estimate of $1.44 billion. Embraer SA had a return on equity of 3.74% and a net margin of 0.10%. The business’s revenue for the quarter was down 9.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.71 earnings per share. On average, analysts anticipate that Embraer SA will post $0.98 earnings per share for the current fiscal year.
Several institutional investors have recently modified their holdings of ERJ. BlackRock Investment Management LLC acquired a new position in shares of Embraer SA during the second quarter valued at about $108,000. JFS Wealth Advisors LLC raised its position in shares of Embraer SA by 14.4% in the second quarter. JFS Wealth Advisors LLC now owns 4,998 shares of the company’s stock valued at $109,000 after buying an additional 631 shares in the last quarter. Macquarie Group Ltd. acquired a new position in shares of Embraer SA during the second quarter valued at about $113,000. Commonwealth Bank of Australia raised its position in shares of Embraer SA by 6.0% in the second quarter. Commonwealth Bank of Australia now owns 7,019 shares of the company’s stock valued at $152,000 after buying an additional 400 shares in the last quarter. Finally, Advisor Group Inc. acquired a new position in shares of Embraer SA during the second quarter valued at about $169,000. Institutional investors and hedge funds own 51.92% of the company’s stock.
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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