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Research Alert: CFRA Maintains Hold Opinion On Adss Of Embraer S.a.
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Research Alert: CFRA Maintains Hold Opinion On Adss Of Embraer S.a.
Mar 19, 2025 8:43 AM

11:20 AM EDT, 03/19/2025 (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 by USD12 to USD59, driven by an assumed P/E multiple of 21.1x our 2026 EPS estimate. We use a P/E multiple that is in line with peers and close to where ERJ has been trading recently. We raise our 2025 earnings per ADS estimate by BRL1.24 to BRL14.07 and our 2026 EPS forecast by BRL1.33 to BRL15.96. In 2025, we forecast total aircraft deliveries of 230 (up 12% Y/Y), driven by 80 commercial jets (up from 73 in 2024) and 150 private jets (up from 130 in 2024). Although we remain at Hold based on relative valuation (ERJ is trading at a premium to its historical average), we have become more optimistic given strong order growth and the record backlog of USD26.3 billion as of December 31, 2024, up 16% Q/Q and up around 41% Y/Y. We note that much of the backlog growth has been driven by Executive Aviation, which is also ERJ's highest margin business. We think this bodes well for margin expansion in the upcoming years.

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