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Research Alert: CFRA Upgrades Opinion On Adss Of Embraer S.a. To Buy From Hold
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Research Alert: CFRA Upgrades Opinion On Adss Of Embraer S.a. To Buy From Hold
May 26, 2025 4:33 AM

03:15 PM EDT, 05/08/2025 (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 maintain our 12-month target price at USD59, or 21.1x our 2026 EPS estimate, in line with peers and close to where ERJ has been trading recently, yet above ERJ's two-year average forward P/E of 15.6x. We lower our 2025 earnings per ADS estimate by BRL4.00 to BRL10.07 and our 2026 forecast by BRL0.17 to BRL15.79. ERJ posted Q1 adj. loss per ADS of -BRL2.27 vs. a loss of -BRL0.39 in the prior-year quarter, which is BRL2.18 wider than the consensus loss per ADS of BRL0.09. Q1 sales of BRL6.24 billion were up 23% Y/Y but missed consensus by 11%. Embraer ( ERJ ) delivered 30 aircraft in Q1 2025, a 20% increase Y/Y. Q1 is typically the seasonal low for deliveries; the Q1 figure represents only 13% of the midpoint of Embraer's ( ERJ ) full-year guidance, slightly above the 11% five-year historical average for the first quarter. The Executive Jets segment showed particular strength, delivering 23 aircraft, a 28% Y/Y increase. We upgrade to Buy based on valuation and a positive outlook for deliveries and top- and bottom-line growth.

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