Wolfe Research Upgrades Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ) to "Outperform"

Key Points

• Wolfe Research upgraded Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ) from "peer perform" to "outperform," setting a target price of $64.00, suggesting a potential upside of 16.49%.
• Several brokerages have recently issued reports, with HSBC upgrading their rating to "strong-buy" and increasing the target price to $57.00, while Goldman Sachs raised its target from $54.00 to $60.00.
• Embraer's latest earnings report showed an EPS of $0.40, surpassing estimates and marking a 23.0% increase in quarterly revenue compared to the previous year.

Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ - Get Free Report) was upgraded by Wolfe Research from a "peer perform" rating to an "outperform" rating in a research note issued to investors on Thursday, Marketbeat reports. The brokerage currently has a $64.00 price target on the aerospace company's stock. Wolfe Research's price target would suggest a potential upside of 16.49% from the company's previous close.

Several other brokerages have also issued reports on ERJ. Hsbc Global Res raised shares of Embraer-Empresa Brasileira de Aeronautica from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, June 4th. The Goldman Sachs Group raised their price objective on shares of Embraer-Empresa Brasileira de Aeronautica from $54.00 to $60.00 and gave the company a "buy" rating in a research note on Monday, May 12th. UBS Group reaffirmed a "sell" rating and issued 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. Finally, HSBC upgraded shares of Embraer-Empresa Brasileira de Aeronautica from a "hold" rating to a "buy" rating and increased their target price for the company from $45.00 to $57.00 in a report on Wednesday, June 4th. 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. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $52.67.

Embraer-Empresa Brasileira de Aeronautica Stock Performance

NYSE ERJ opened at $54.94 on Thursday. The company has a quick ratio of 0.59, a current ratio of 1.32 and a debt-to-equity ratio of 0.56. The company has a market capitalization of $10.09 billion, a P/E ratio of 25.44 and a beta of 1.72. Embraer-Empresa Brasileira de Aeronautica has a 12-month low of $26.04 and a 12-month high of $61.65. The firm has a 50-day moving average price of $51.45 and a two-hundred day moving average price of $47.33.

Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ - Get Free Report) last issued its earnings results on Tuesday, May 6th. The aerospace company reported $0.40 EPS for the quarter, beating the consensus estimate of $0.21 by $0.19. Embraer-Empresa Brasileira de Aeronautica had a net margin of 6.02% and a return on equity of 16.43%. The company had revenue of $1.10 billion during the quarter, compared to analysts' expectations of $1.17 billion. During the same period in the previous year, the company earned ($0.48) EPS. The business's revenue for the quarter was up 23.0% compared to the same quarter last year. Analysts anticipate that Embraer-Empresa Brasileira de Aeronautica will post 2.04 earnings per share for the current year.

Institutional Investors Weigh In On Embraer-Empresa Brasileira de Aeronautica

Hedge funds have recently made changes to their positions in the business. Townsquare Capital LLC grew its position in shares of Embraer-Empresa Brasileira de Aeronautica by 1.7% in the 4th quarter. Townsquare Capital LLC now owns 26,461 shares of the aerospace company's stock worth $971,000 after buying an additional 454 shares during the period. WPG Advisers LLC bought a new position in shares of Embraer-Empresa Brasileira de Aeronautica during the 1st quarter valued at approximately $25,000. Stifel Financial Corp lifted its position in shares of Embraer-Empresa Brasileira de Aeronautica by 0.8% during the fourth quarter. Stifel Financial Corp now owns 75,785 shares of the aerospace company's stock worth $2,780,000 after purchasing an additional 566 shares during the last quarter. U.S. Capital Wealth Advisors LLC lifted its position in shares of Embraer-Empresa Brasileira de Aeronautica by 5.3% during the first quarter. U.S. Capital Wealth Advisors LLC now owns 12,312 shares of the aerospace company's stock worth $569,000 after purchasing an additional 624 shares during the last quarter. Finally, US Bancorp DE increased its stake in shares of Embraer-Empresa Brasileira de Aeronautica by 19.4% during the first quarter. US Bancorp DE now owns 3,984 shares of the aerospace company's stock valued at $184,000 after buying an additional 648 shares during the period. 34.65% of the stock is currently owned by institutional investors.

Embraer-Empresa Brasileira de Aeronautica Company Profile

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.

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