Analyst Alberto Valerio from UBS maintained a Sell rating on Embraer SA and keeping the price target at $44.00.
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Alberto Valerio’s rating is based on several factors influencing Embraer SA’s future performance. Despite the company’s optimistic projections for increased aircraft deliveries and strategic growth plans, there are underlying concerns about the feasibility of these targets. The anticipated delivery numbers and revenue growth, though promising, might not align with market consensus and UBS estimates, which are more conservative.
Additionally, while Embraer is exploring new projects and enhancing its balance sheet, the lack of specific details about new aircraft developments raises questions about the execution risks involved. Furthermore, the company’s ambitious plans for its EVE urban mobility segment, although innovative, come with uncertainties regarding market adoption and regulatory challenges. These factors contribute to the cautious outlook and the Sell rating assigned by Valerio.