We are downgrading our recommendation on Embraer (ERJ) from Neutral to Underperform. The international economic environment remains an issue, considering the company’s exposure to the U.S. and Europe.

Moreover, the company’s high concentration for some models, with primary focus on American airline companies, exposes it to considerable risks. However, lower oil prices compared to 2008 and the support of the Brazilian Government appear to be encouraging. We also remain optimistic about the strength in the company’s aircraft family.

Nevertheless, the considerable strain on the Brazilian airport infrastructure will certainly impact the company’s local sales.

Zacks Investment Research
View original at: Zacks.com News Feed

1. (ERJ) – Empresa Brasileira de Aeronáutica – current PEG ratio for Embraer is 0.5Empresa Brasileira de Aeronáutica (ERJ) is expanding in Latin America as estimates are climbing. The...

Search Posts by Tag: EMBRAER - Empresa Brasileira de Aeronáutica S.A. | ERJ | Aerospace-Defense Products & Services | Industrial Goods

RSS Feeds by Tag: EMBRAER - Empresa Brasileira de Aeronáutica S.A. | ERJ | Aerospace-Defense Products & Services | Industrial Goods |

Other Posts by: vitalstocks | RSS Feed for this author