In a report released yesterday, Ronald Epstein from Bank of America Securities reiterated a Buy rating on Embraer SA (ERJ – Research Report), with a price target of $55.00.
Ronald Epstein has given his Buy rating due to a combination of factors including Embraer’s reaffirmation of its 2025 outlook and its strong performance in various segments. Despite missing the consensus earnings per share estimate for the first quarter of 2025 due to higher interest expenses and deferred taxes, Embraer reported a solid firm order backlog of $26.4 billion, indicating strong future demand.
Moreover, the company showed significant growth in its Executive Aviation and Defense & Security segments, with year-over-year revenue increases of 35% and 72%, respectively. The reaffirmation of Embraer’s 2025 outlook, with expected aircraft deliveries and revenue targets, along with the announcement of a dividend, further supports the positive outlook. These factors contribute to the Buy rating, with a price objective set at $55.00 USD, reflecting confidence in Embraer’s potential for growth and profitability.