Embraer initiated with a Buy at UBS

UBS analyst Alberto Valerio initiated coverage of Embraer with a Buy rating and $14 price target. Valerio’s view on Embraer is mainly due to the Executive Aviation segment, where he believes the company can benefit from an upcycle, as well as Compressed Commercial and Defense segment estimates, the analyst tells investors in a research note. Valerio sees medium-term upside potential on the possible resumption of the E175-E2 and the recently announced next-generation turbo prop, and sees long-term upside potential in EVEX.