Goldman Sachs analyst Noah Poponak maintained a Buy rating on Embraer yesterday and set a price target of $75.00.
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Noah Poponak has given his Buy rating due to a combination of factors that highlight Embraer’s strong market position and growth potential. The company is experiencing robust demand across its commercial and executive jet divisions, with a significant backlog that supports gradual production growth. This demand, coupled with pricing power, positions Embraer well for future success.
Furthermore, the defense segment is set for expansion with new orders for the KC-390 and Super Tucano, while the services division aims to double its revenue by 2030. Embraer’s focus on sustainable free cash flow generation and a target FCF/EBITDA conversion rate of 50% also contribute to a positive outlook. Despite supply chain constraints, the company is strategically planning to increase production capacity to meet the strong demand, making it a compelling investment opportunity.
According to TipRanks, Poponak is a 4-star analyst with an average return of 6.6% and a 52.65% success rate. Poponak covers the Industrials sector, focusing on stocks such as Embraer, Mercury Systems, and Huntington Ingalls.