Embraer Stock Flies As UBS Turns Bullish

UBS analyst Myles Walton upgraded Embraer SA (NYSE: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.