EVEX - Embraer: Filling The Boeing Gap?

2024-03-28 02:06:29 ET

Summary

• Embraer has completed a multi-year turnaround, with an improved cost structure and EBITDA margins of over 10%.
• Embraer is guiding for 20% revenue and EBITDA growth in 2024.
• The stock has performed well, with potential for positive surprises in the commercial aircraft segment and the hidden asset of its eVTOL subsidiary, Eve Holdings.

Summary

As part of my continuing coverage of Embraer ( ERJ ) I have updated estimates and valuation post 4Q23 results and provided an overview of the developing investment case. My view on ERJ has improved from the previous article more from de-risking the balance sheet and the company's ability to generate free cash flow than from revenue or earnings growth. This de-risking plus an increased order book has led to ERJ recuperating its valuation multiplies....

For further details see: