Embraer stock price target raised to $65 from $55 at BofA Securities

Investing.com - BofA Securities has raised its price target on Embraer (NYSE:ERJ) to $65 from $55 while maintaining a Buy rating on the Brazilian aircraft manufacturer’s stock. The company, now valued at $10.77 billion, has seen its shares surge over 120% in the past year, according to InvestingPro data.

The price target increase follows Embraer’s strong first-quarter performance, which showed growth across all business segments, with particular strength in Executive Aviation and Defense divisions.

BofA Securities noted that Embraer effectively managed supply chain challenges during the quarter, resulting in deliveries increasing 20% year-over-year while maintaining a record-high backlog of $26 billion, up 25% from the previous year.

The investment bank’s new price target is derived from a 0.75x relative EV/EBITDA multiple to the S&P 500 on 2026 estimates, unchanged from its previous valuation methodology.

BofA Securities expects Embraer to continue benefiting from strong demand across its product portfolio, with cost reduction initiatives supporting greater margin expansion in the future.

In other recent news, Embraer S.A. reported a significant increase in aircraft deliveries, with 61 units delivered in the second quarter of 2025, marking a 30% rise from the previous year. The company anticipates delivering between 77 and 85 aircraft in Commercial Aviation and 145 to 155 jets in Executive Aviation for the full year. In a notable development, Scandinavian Airlines (SAS) ordered up to 55 Embraer E195-E2 jets, valued at approximately $4 billion, to enhance its fleet and operational efficiency. Additionally, Lithuania selected Embraer’s C-390 Millennium as its military transport aircraft, planning to acquire three units to boost operational readiness. SkyWest (NASDAQ:SKYW), Inc. also placed a firm order for 60 Embraer aircraft, totaling $3.6 billion, with deliveries starting in 2027. These orders highlight Embraer’s expanding influence in both commercial and defense aviation sectors. Embraer’s collaborations with SAS and SkyWest underline its strong partnerships and commitment to sustainability and efficiency in aviation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.