Embraer upgraded to Buy from Hold at HSBC

HSBC last night upgraded Embraer (ERJ) to Buy from Hold with a price target of $57, up from $45. With an all-time high backlog of $26.4B at the end of Q1, Embraer offers strong revenue generation in the coming quarters, which is supported by accelerated efforts to remove output bottlenecks and spread production more evenly over quarters, the analyst tells investors in a research note. The firm sees a limited impact from the new U.S. tariffs on the company. The Paris Air Show in mid-June may bring fresh headlines in terms of new firm orders, and EVE is at a critical point with its first full-scale prototype flight test pending, a potential positive catalyst if successful, adds HSBC.