, an analyst from Citi, maintained the Buy rating on Embraer SA. The associated price target is $59.00.
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Citigroup’s rating is based on several positive developments surrounding Embraer SA, which have positioned the company favorably in the market. One of the key factors is the recent delay in the implementation of tariffs on Brazilian imports, which includes exemptions for certain products like airplanes. This delay has provided a significant boost to Embraer’s stock, as evidenced by a 10% increase in its value following the announcement.
Furthermore, Embraer’s E175 commercial aircraft stands out in the U.S. market due to its compliance with scope clauses, leaving it with little to no competition. This unique position has been further reinforced by U.S. airline companies expressing concerns over potential tariffs, which they believe would disrupt their operations. These factors, combined with an expected share price return of 19.3%, underpin Citigroup’s Buy rating for Embraer SA.
In another report released yesterday, Wolfe Research also upgraded the stock to a Buy with a $64.00 price target.
ERJ’s price has also changed moderately for the past six months – from $40.960 to $54.830, which is a 33.86% increase.