UBS Resumes, Downgrades Embraer (ERJ) to Sell

November 22, 2016 8:06 AM EST
Get Alerts ERJ Hot Sheet
Price: $23.12 +2.12%

Rating Summary:
    10 Buy, 5 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 1 | Down: 2 | New: 3
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UBS downgraded Embraer (NYSE: ERJ) from Neutral to Sell with a price target of $19.00 (from $28.00) in resumed coverage. The analyst said the pilot pushback raises risk to E175-E2 viability.

Analyst Darryl Genovesi commented, "We resume coverage of ERJ at Sell (previously Neutral) as we are skeptical of its ability
to monetize its nearly $2B investment in its next generation "E2" commercial aircraft while its midsize bizjet ramp-up is largely behind and competitive growth from Cessna is accelerating. ERJ trades at a ~10% discount to aerospace peers, about in line with its historical discount, but we think a bigger discount is warranted given its slowing growth outlook and still breakeven to negative FCF."

For an analyst ratings summary and ratings history on Embraer click here. For more ratings news on Embraer click here.

Shares of Embraer closed at $20.30 yesterday.

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