Embraer downgraded to Neutral from Buy at UBS

UBS downgraded Embraer to Neutral from Buy with a price target of $28.50, up from $21. Following the recent rally, the shares are pricing in “positive optionalities,” given that the current stock price implies $700M EBITDA, the top range guidance, leaving virtually no meaningful upside potential, the analyst tells investors in a research note. The firm expects Embraer to meet the low end of the guidance for deliveries in 2024 as it sees supply chain and engine issues as constraints for higher deliveries growth.