According to the bank, the adjustment reflects “stronger than expected deliveries and demand in all segments”
revised upwards the target price for the Brazilian aircraft manufacturer’s shares, going from US$40 to US$55 for ADRs (American Depositary Receipts), according to a report released to clients and the market this Thursday (21. nov.2024) with purchase indication. THE upside estimated is 45.9%.
The adjustment reflects “Stronger than expected deliveries and demand across all segments, as well as the company’s successful management of supply chain challenges, positioning it for continued growth and success in the future”indicated the analysts.
Additionally, BofA analysts adjusted earnings per share (EPS) outlook for this year from $1.55 to $1.90. For next year, the projection is US$1.75 (vs. previous US$1.85) and 2026 US$2.50 (vs. previous US$2.60).
“Innovation is in Embraer’s DNA”highlighted the bank in the document, highlighting that the company’s strategy is working, with strong backlogdeliveries and improvement of the financial profile.
The quarter with robust commercial, executive and defense deliveries indicates continued expansion and reinforces BofA’s confidence in the company’s growth in the medium term, with opportunities in services and defense, but strong demand in all segments.
“Embraer also surprised in FCF, delivering stronger than expected performance and raising the outlook to +US$300 million, from +US$220 million. Increased deliveries and advance payments from customers boosted FCF in the quarter”said the bank, demonstrating confidence that the company will present a robust expansion in cash flow in the last quarter of the year, with better deliveries and margins.
With information from .
