- UBS analyst Myles Walton upgraded Embraer SA ERJ to Buy from Neutral and raised the price target to $24, from $16, suggesting a 40% upside.
- Walton says Embraer has struggled over the last several years with stagnant demand, inefficient operations, and negative free cash flow, "but that is changing."
- The company is focused on improving operations while the business jet demand environment is at its best in over a decade, says the analyst.
- Walton contends that when combined with an investment spending hiatus, Embraer is facing a "multi-year period" of positive free cash flow.
- Also read, Embraer Clocks 26% Revenue Growth In Q3, Misses Estimates.
- Price Action: ERJ shares are trading higher by 3.79% at $17.11 on the last check Thursday.
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