Last Updated: 13 Sep 2024
Executive Summary
Embraer SA ADR (ERJ) is a leading aircraft manufacturer with a strong presence in the commercial and defense sectors. The company has a solid financial position and is expected to benefit from the recovery in the aviation industry. The stock is currently trading at $36.06, below its 52-week high of $36.23. Analysts are bullish on the stock, with a consensus target price of $37.5 and a majority of buy ratings.
Company Overview
Embraer SA is a Brazilian aerospace conglomerate that designs, develops, manufactures, and sells aircraft and systems. The company's products include commercial jets, regional jets, executive jets, and military aircraft. Embraer is headquartered in São José dos Campos, Brazil, and has operations in Brazil, the United States, Europe, and Asia.
Fundamental Analysis
Embraer SA has a strong financial position. The company has a market capitalization of $6.6 billion and an EBITDA of $2.3 billion. The company's profit margin is 6.75%, and its return on equity is 13%. Embraer SA has a strong balance sheet, with $3.2 billion in cash and equivalents and $2.1 billion in debt.
The company's revenue grew by 0.234% in the most recent quarter, and its earnings per share grew by 6.92%. Analysts expect Embraer SA to continue to grow its revenue and earnings in the coming years.
Technical Analysis
The stock price of Embraer SA has been trading in a range between $24.8 and $36.23 over the past year. The stock is currently trading near the top of its range, and it is likely to continue to trade in this range in the short term.
The 50-day moving average of the stock is $30.98, and the 200-day moving average is $24.8. The stock is currently trading above both of its moving averages, which is a bullish sign.
Short Term Outlook
The stock price of Embraer SA is likely to continue to trade in a range between $24.8 and $36.23 in the short term. The stock is currently trading near the top of its range, and it is likely to face resistance at this level. However, the stock is also supported by its moving averages, which could provide a floor for the stock price.
Long Term Outlook
The long-term outlook for Embraer SA is positive. The company is a leading aircraft manufacturer with a strong financial position. The company is expected to benefit from the recovery in the aviation industry. Analysts expect Embraer SA to continue to grow its revenue and earnings in the coming years.
Analyst Recommendations
Analysts are bullish on Embraer SA. The consensus target price for the stock is $37.5, and a majority of analysts have buy ratings on the stock.
