For Embraer S.A. [ERJ], Analyst sees a rise to $23. What next?


Embraer S.A. [NYSE: ERJ] gained 4.60% on the last trading session, reaching $11.15 price per share at the time. The company report on May 31, 2022 that Eve partners with Porsche Consulting to define eVTOL global manufacturing, logistics and supply chain strategy.

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Eve Holding, Inc. (“Eve”) (NYSE: EVEX; EVEXW), a leader in the development of next-generation Urban Air Mobility (“UAM”) solutions and a carve-out from Embraer S.A. (“Embraer”), announced today that it has chosen Porsche Consulting, Inc. to help define the eVTOL (electric vertical take-off and landing) supply chain, global manufacturing and logistics macro strategy.

Considering advanced manufacturing research and innovation, the companies will combine their aeronautic and automotive expertise to support Eve’s implementation plan. The master services agreement that has been entered into by and between the companies includes studies on industrial operation, logistics, supply chain and parts distribution in an unprecedented approach optimized for efficiency, productivity and safety.

Embraer S.A. represents 183.66 million in outstanding shares, while the company has a total market value of $2.02 billion with the latest information. ERJ stock price has been found in the range of $10.78 to $11.475.

If compared to the average trading volume of 2.70M shares, ERJ reached a trading volume of 4235779 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Embraer S.A. [ERJ]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ERJ shares is $21.16 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ERJ stock is a recommendation set at 2.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Morgan Stanley have made an estimate for Embraer S.A. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on January 20, 2022. While these analysts kept the previous recommendation, UBS raised their target price from $16 to $24. The new note on the price target was released on November 11, 2021, representing the official price target for Embraer S.A. stock. Previously, the target price had yet another raise to $23, while Goldman analysts kept a Buy rating on ERJ stock. On June 11, 2021, analysts increased their price target for ERJ shares from 8 to 20.

The Average True Range (ATR) for Embraer S.A. is set at 0.62, with the Price to Sales ratio for ERJ stock in the period of the last 12 months amounting to 0.45. The Price to Book ratio for the last quarter was 0.78, with the Price to Cash per share for the same quarter was set at 10.59. Price to Free Cash Flow for ERJ in the course of the last twelve months was 2.71 with Quick ratio for the last quarter at 1.20.

Trading performance analysis for ERJ stock

Embraer S.A. [ERJ] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 10.18. With this latest performance, ERJ shares dropped by -2.62% in over the last four-week period, additionally sinking by -13.70% over the last 6 months – not to mention a drop of -17.71% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ERJ stock in for the last two-week period is set at 53.42, with the RSI for the last a single of trading hit 59.62, and the three-weeks RSI is set at 50.09 for Embraer S.A. [ERJ]. The present Moving Average for the last 50 days of trading for this stock 11.44, while it was recorded at 10.74 for the last single week of trading, and 14.56 for the last 200 days.

Embraer S.A. [ERJ]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Embraer S.A. [ERJ] shares currently have an operating margin of +3.51 and a Gross Margin at +15.61. Embraer S.A.’s Net Margin is presently recorded at -1.21.

Return on Equity for this stock declined to -1.86, with Return on Assets sitting at -0.49.

Embraer S.A.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 2.00.

Embraer S.A. [ERJ]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ERJ. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Embraer S.A. go to 4.08%.

An analysis of insider ownership at Embraer S.A. [ERJ]

There are presently around $791 million, or 41.40% of ERJ stock, in the hands of institutional investors. The top three institutional holders of ERJ stocks are: BRANDES INVESTMENT PARTNERS, LP with ownership of 19,098,457, which is approximately 1.116% of the company’s market cap and around 12.40% of the total institutional ownership; AMERICAN CENTURY COMPANIES INC, holding 3,858,310 shares of the stock with an approximate value of $41.13 million in ERJ stocks shares; and SPX EQUITIES GESTAO DE RECURSOS LTDA, currently with $40.38 million in ERJ stock with ownership of nearly -2.697% of the company’s market capitalization.

Positions in Embraer S.A. stocks held by institutional investors increased at the end of April and at the time of the April reporting period, where 78 institutional holders increased their position in Embraer S.A. [NYSE:ERJ] by around 12,821,276 shares. Additionally, 84 investors decreased positions by around 9,192,794 shares, while 20 investors held positions by with 52,221,788 shares. The mentioned changes placed institutional holdings at 74,235,858 shares, according to the latest SEC report filing. ERJ stock had 24 new institutional investments in for a total of 1,907,023 shares, while 42 institutional investors sold positions of 5,869,614 shares during the same period.