UBS Raises Embraer Price Target to $44.00 Amid "Sell" Rating

UBS maintains "Sell" rating on Embraer (ERJ) while raising price target to $44.00 from $39.00, representing a 12.82% increase. Analyst Alberto Valerio highlighted the price target increase. Embraer SA is a Brazilian manufacturer of jets, focusing on commercial aviation, executive jets, and defense and security markets. The average one-year price target for ERJ is $61.00, with a high estimate of $75.00 and a low estimate of $37.00. The average target implies an upside of 4.54% from the current price of $58.35.

UBS Group AG has maintained its "sell" rating on Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ) but has raised its price target to $44.00 from $39.00, representing a 12.82% increase. Analyst Alberto Valerio highlighted the price target increase. Embraer SA is a Brazilian manufacturer of jets, focusing on commercial aviation, executive jets, and defense and security markets. The average one-year price target for ERJ is $61.00, with a high estimate of $75.00 and a low estimate of $37.00. The average target implies an upside of 4.54% from the current price of $58.35.

UBS's adjustment comes after Embraer reported a loss of $0.02 per share in its most recent earnings, which was significantly below analysts' expectations, despite achieving a revenue of $1.82 billion [1]. The company's stock has seen significant institutional buying, with Fox Hill Wealth Management lifting its position by 104.4% during the first quarter of 2025 [1]. Several other institutional investors have also increased their stakes in Embraer, including Colonial Trust Co SC, Farther Finance Advisors LLC, PNC Financial Services Group Inc., US Bancorp DE, and Redwood Investments LLC [1].

Analyst sentiment on Embraer is mixed. Wolfe Research raised Embraer from a "peer perform" rating to an "outperform" rating and set a $64.00 price target on the stock. Wall Street Zen downgraded Embraer from a "buy" rating to a "hold" rating. UBS Group restated a "sell" rating and set a $39.00 price objective. Hsbc Global Res upgraded Embraer from a "hold" rating to a "strong-buy" rating and HSBC upgraded Embraer from a "hold" rating to a "buy" rating, lifting their price objective for the stock from $45.00 to $57.00 [1]. Goldman Sachs has raised its target price for Embraer from $60.00 to $67.00, indicating a potential upside of 15.69% based on its recent stock close [3].

Despite the mixed analyst sentiment, Embraer's stock has seen significant institutional buying, which could be a positive sign for the company's future performance. Embraer's second-quarter 2025 results saw a 2.1% gain to reach $58.39, following the release of its earnings report. The company reported a second-quarter 2025 adjusted loss of 2 cents per American Depository Share (ADS), which missed the Zacks Consensus Estimate for earnings of 47 cents [2]. Revenues totaled $1.82 billion, up 21.8% year over year, driven by higher revenues from all of ERJ’s business segments, especially Executive Aviation [2].

Embraer's backlog at the end of the first quarter was $29.7 billion, higher than the previous quarter’s figure of $26.4 billion [2]. The company continues to expect to deliver 77-85 commercial jets and 145-155 Executive Aviation jets in 2025, with revenues in the range of $7.0-$7.5 billion [2].

References:
[1] https://www.marketbeat.com/instant-alerts/filing-fox-hill-wealth-management-increases-stock-position-in-embraer-empresa-brasileira-de-aeronautica-nyseerj-2025-08-13/
[2] https://www.theglobeandmail.com/investing/markets/stocks/BA/pressreleases/34049176/embraers-q2-earnings-miss-estimates-revenues-increase-yy/
[3] https://www.marketbeat.com/instant-alerts/the-goldman-sachs-group-forecasts-strong-price-appreciation-for-embraer-empresa-brasileira-de-aeronautica-nyseerj-stock-2025-08-07/