, an analyst from Citi, maintained the Buy rating on Embraer SA. The associated price target was raised to $70.00.
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Citigroup’s rating is based on Embraer SA’s strategic initiatives and promising growth prospects. The company has recently rebranded its stock ticker to EMBJ, signaling a potential expansion into larger aircraft markets. This move could position Embraer to compete with major players like Airbus and Boeing by developing a long-range business jet and a larger narrowbody aircraft. Additionally, Embraer’s production plans for the KC-390 are set to increase significantly, with potential investments in a new assembly line in the US contingent on securing a deal with the USAF.
Furthermore, the demand for business jets has grown, partly due to the pandemic, as more affluent individuals opt for private travel. Embraer has also secured a substantial order for its E195-E2 aircraft, which, despite expected discounts, represents a significant revenue opportunity. With these developments, Citigroup has updated its target price for Embraer’s stock to $70 per share, reflecting a potential upside of 16% from the last closing price, thereby justifying the Buy rating.
In another report released on October 7, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $66.00 price target.