Embraer pullback on tariffs a buying opportunity, says Morgan Stanley

Morgan Stanley views the pullback in Embraer (ERJ) shares after the U.S. announced a 50% tariff on Brazil as an attractive buying opportunity. The key tariff risk for the company is in its Executive Aviation segment, the analyst tells investors in a research note. The firm sees limited impact in Embraer’s other segments and reiterates an Overweight rating on the shares with a $65 price target Morgan Stanley estimates that if the 50% tariff on Brazil were to take effect, Embraer could see an annualized EBIT impact of $300M-$400M.