Embraer upgraded to Buy from Neutral at Citi

Citi upgraded Embraer to Buy from Neutral with a $16 price target. The company’s fundamentals continue to look mixed, with good expectations embedded in the executive jets backlog, while the current geopolitical environment possibly boosts the defense segment, even though the commercial segment remains challenging, the analyst tells investors in a research note. However, the commercial segment “may have now reached a floor,” as some industry data points to a little upside versus Citi’s previous estimates, says the firm. When considering Embraer’s five-year underperformance and “some valuation tailwind,” Citi upgraded the shares.