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Drexel Hamilton Starts Embraer (ERJ) at Buy; Defense & BizJets Give Thrust

May 24, 2012 9:34 AM EDT Send to a Friend
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Price: $39.06 -0.1%

Rating Summary:
    8 Buy, 8 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 35 | Down: 23 | New: 13
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Drexel Hamilton initiates coverage on Embraer (NYSE: ERJ) with a Buy. PT $33.00.

Analyst, Peter Skibitski, said, "We see the main growth drivers for ERJ over the next few years as its Defense and Executive Aviation segments, which have leverage to increased Brazilian defense projects and new greenfield business jets that should take share...As well, the planned Brazilian INSS Social Security payroll tax cut offers leverage to revenue growth. While we think the tax cut only impacts 2012 operating margin by ~30 bps, for 2013 and 2014 we estimate the impact at 110 and 120 bps, respectively."

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 $29.29 yesterday.




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