Embraer ( NYSE: ERJ ) on Monday was assigned an investment rating of Buy by analysts at UBS. They said the Brazilian maker of aircraft is poised to benefit from a boom in executive aviation.
“There is historically low inventory for pre-owned jets,” Alberto Valerio, analyst at UBS, said in a January 9 report. “It is a turning point in deliveries for the industry and Embraer reached 17% of its backlog from executive aviation in 2021 (an average of 7% since end-2014). The business jet boom will help bring upside to Embraer’s ( ERJ ) margins, while adding significant volume to its backlog.”
The bank set a price target of $14 a share on Embraer ( ERJ ) based on an implied sum-of-the-parts 12-month forward enterprise value-to-EBITDA multiple of 7.3 times.
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Embraer rated Buy at UBS on executive aviation boom