01:45 AM EDT, 07/07/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We increase our 12-month target price by USD9 to USD68, assuming a P/E multiple of 22.9x our 2026 EPS estimate, a premium to ERJ's two-year average forward P/E of 16.1x but a discount to peers' average forward P/E of 25.9x. We raise our 2025 earnings per ADS estimate by BRL0.42 to BRL10.49 and 2026 forecast by BRL0.31 to BRL16.10. ERJ's P/E expansion in recent months reflects the market's recognition that it is benefiting from a structural shift in aviation demand toward smaller, more efficient regional aircraft, while simultaneously diversifying into higher-margin defense and business aviation segments that offer more stable cash flows than traditional commercial aerospace. The Brazilian manufacturer has been winning key international defense contracts with its C-390 military transport and capitalizing on the resilient executive jet market, positioning itself as more than just a regional aircraft player. We reiterate our bullish outlook and anticipate a strong Q2 earnings print.