On Jun 18, 2013, the shares of
) hit a 52-week high of $38.77. The adjusted closing price was
$38.58 per share, a 12.3% jump from the beginning of the second
quarter of 2013.
Embraer received a steady flow of orders in the first quarter,
exiting with a backlog of $13.3 billion, up $0.8 billion
In addition, firm commitments received by the company in the
first two days of the Paris Air Show are a testament of the
Brazilian jet maker's popularity. One of the largest commitments
came from SkyWest Inc. The company signed firm orders for 100
E175-E2 aircraft, with another 100 Purchase Rights. If all the
orders are executed, the contract value is expected to touch
$9.36 billion at list prices.
The launch of the advanced E-2 commercial aircrafts has the
potential to steal the show in the commercial 70-130 seat market.
This low cost, fuel efficient and spacious cabins are making the
E-Jet commercial aircrafts popular. We expect Embraer to further
boost its order tally in the Paris Show.
In Jun 2013, Standard & Poor's upgraded Embraer's credit
rating to 'BBB' from 'BBB-'. The upgrade in credit rating is
based on the company's strong credit metrics and operational
efficiency. Moreover, the improvement in the regional airline
market is also going to benefit Embraer.
Embraer SA retains a Zacks Rank #3 (Hold). Other companies
in the industry worth considering are
Erickson Air-Crane Inc.
Alliant Techsystems Inc.
Wesco Aircraft Holdings Inc.
). Erickson Air-Crane presently has a Zacks Rank #1 (Strong Buy)
while Alliant Techsystems and Wesco Aircraft Holdings hold a
Zacks Rank # 2 (Buy).
ALLIANT TECHSYS (ATK): Free Stock Analysis
ERICKSON AIR-CR (EAC): Free Stock Analysis
EMBRAER AIR-ADR (ERJ): Free Stock Analysis
WESCO AIRCRAFT (WAIR): Free Stock Analysis
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