The Goldman Sachs Group Issues Positive Forecast for Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ) Stock Price

Key Points

• Goldman Sachs has raised its target price for Embraer (NYSE:ERJ) from $60.00 to $67.00, indicating a potential upside of 15.69% based on its recent stock close.
• HSBC upgraded Embraer's rating from "hold" to "buy" and lifted its target price to $57.00, adding to the positive sentiment towards the stock.
• Embraer reported quarterly earnings with a loss per share of $0.02, missing analysts' consensus estimates but generated revenue of $1.82 billion, exceeding expectations.

Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ - Get Free Report) had its price target raised by equities research analysts at The Goldman Sachs Group from $60.00 to $67.00 in a report released on Thursday,Benzinga reports. The firm currently has a "buy" rating on the aerospace company's stock. The Goldman Sachs Group's price objective would suggest a potential upside of 16.05% from the stock's previous close.

ERJ has been the subject of a number of other reports. UBS Group restated a "sell" rating and set a $39.00 price objective (up from $35.00) on shares of Embraer-Empresa Brasileira de Aeronautica in a research note on Thursday, April 24th. Hsbc Global Res upgraded Embraer-Empresa Brasileira de Aeronautica from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, June 4th. HSBC upgraded shares of Embraer-Empresa Brasileira de Aeronautica from a "hold" rating to a "buy" rating and upped their price objective for the company from $45.00 to $57.00 in a report on Wednesday, June 4th. Finally, Wolfe Research upgraded shares of Embraer-Empresa Brasileira de Aeronautica from a "peer perform" rating to an "outperform" rating and set a $64.00 price objective on the stock in a report on Thursday, July 31st. One investment analyst has rated the stock with a sell rating, one has given a hold rating, four have issued a buy rating and two have issued a strong buy rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $53.83.

Embraer-Empresa Brasileira de Aeronautica Stock Down 1.1%

Shares of ERJ stock traded down $0.66 during mid-day trading on Thursday, hitting $57.74. The stock had a trading volume of 1,108,058 shares, compared to its average volume of 2,851,349. Embraer-Empresa Brasileira de Aeronautica has a 12-month low of $30.96 and a 12-month high of $61.65. The firm has a market capitalization of $10.60 billion, a P/E ratio of 28.16 and a beta of 1.76. The firm's 50-day moving average is $53.12 and its two-hundred day moving average is $48.44. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.33 and a quick ratio of 0.60.

Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ - Get Free Report) last issued its earnings results on Tuesday, August 5th. The aerospace company reported ($0.02) earnings per share for the quarter, missing the consensus estimate of $0.47 by ($0.49). The firm had revenue of $1.82 billion during the quarter, compared to analysts' expectations of $1.67 billion. Embraer-Empresa Brasileira de Aeronautica had a return on equity of 13.38% and a net margin of 5.43%. During the same quarter in the prior year, the company posted $0.44 earnings per share. On average, analysts predict that Embraer-Empresa Brasileira de Aeronautica will post 2.04 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Embraer-Empresa Brasileira de Aeronautica

Several hedge funds have recently bought and sold shares of the company. Itau Unibanco Holding S.A. lifted its stake in Embraer-Empresa Brasileira de Aeronautica by 22.7% during the 2nd quarter. Itau Unibanco Holding S.A. now owns 1,172,217 shares of the aerospace company's stock worth $66,711,000 after acquiring an additional 217,015 shares in the last quarter. Everett Harris & Co. CA purchased a new stake in Embraer-Empresa Brasileira de Aeronautica during the 2nd quarter worth about $239,000. First Horizon Advisors Inc. increased its holdings in Embraer-Empresa Brasileira de Aeronautica by 1,608.7% during the 2nd quarter. First Horizon Advisors Inc. now owns 2,170 shares of the aerospace company's stock worth $123,000 after purchasing an additional 2,043 shares during the period. Bank of New York Mellon Corp purchased a new stake in Embraer-Empresa Brasileira de Aeronautica during the 2nd quarter worth about $11,046,000. Finally, AdvisorShares Investments LLC increased its holdings in Embraer-Empresa Brasileira de Aeronautica by 20.9% during the 2nd quarter. AdvisorShares Investments LLC now owns 44,872 shares of the aerospace company's stock worth $2,554,000 after purchasing an additional 7,761 shares during the period. Institutional investors and hedge funds own 34.65% of the company's stock.

About Embraer-Empresa Brasileira de Aeronautica

Embraer SA designs, develops, manufactures, and sells aircraft and systems in North America, Latin America, the Asia Pacific, Brazil, Europe, and internationally. The company operates through Commercial Aviation; Defense & Security; Executive Aviation; Services & Support; and Other segments. The Commercial Aviation segment designs, develops, manufactures, and sells commercial jets, as well as leases aircraft.