Embraer SA Received its Third Buy in a Row

By Ryan Adsit

After J.P. Morgan and Goldman Sachs assigned a Buy rating to Embraer SA in the last month, the company received another Buy, this time from Drexel Hamilton. Analyst Peter Skibitski upgraded Embraer SA (NYSE: ERJ) to Buy today. The company’s shares closed yesterday at $21.39.

According to TipRanks.com, Skibitski is a 4-star analyst with an average return of 8.3% and a 69.4% success rate. Skibitski covers the Industrial Goods sector, focusing on stocks such as General Dynamics Corp., Lockheed Martin Corp., and Ceco Environmental.

Currently, the analyst consensus on Embraer SA is Strong Buy and the average price target is $23, representing a 7.5% upside.

In a report issued on October 18, Cowen & Co. also upgraded the stock to Buy.

Embraer SA’s market cap is currently $3.93B and has a P/E ratio of 838.82. The company has a book value ratio of 1.0600.

Embraer SA designs, manufactures and sells aircraft and its parts for commercial, defense and executive aviation sectors. It operates through the following segments: Commercial Aviation, Defense & Security, Executive Aviation, and Other. The Commercial Aviation business involves the development, production, sale, and lease of commercial jets as well as the provision of aviation support services. The Defense & Security segment includes research, development, production, modification, and support for military defense aircraft, and related products and services. The Executive Aviation Market segment covers the development, production, and sale of executive jets, and support services. The Other segment is composed of structural parts, mechanical and hydraulic systems, production of agricultural crop-spraying aircraft, and customer training. The company was founded by Ozires Silva on August 19, 1969 and is headquartered in Sao Jose dos Campos, Brazil.