UBS Resumes, Downgrades Embraer (ERJ) to Sell
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
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."
Shares of Embraer closed at $20.30 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UBS Cuts Price Target on Restoration Hardware (RH) to $34 Following 3Q
- Jefferies Raises Price Target on Casey's General Stores (CASY) Following 2Q Earnings Report
- UBS Raises Price Target on Selecta Biosciences (SELB) to $29
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!