Embraer-Boeing in Strategic Tie - Analyst Blog


Yesterday, Embraer S.A. ( ERJ ) along with The Boeing Company ( BA ) announced an agreement, which tied the two big banners of global aviation in a strategic relationship.  The mutual partnership is aimed to foster operational efficiency and customer satisfaction, without compromising safety and productivity.

Brazilian and United States governments signed a Memorandum of Understanding (MoU) on the Aviation Partnership, targeted to pursue several areas of cooperation, including research, technology and sustainable aviation biofuels-a stride quite enviable to Embraer's peers such as Lockheed Martin Corporation ( LMT ) and Northrop Grumman Corporation ( NOC ).

Frederico Curado, President and CEO of Embraer S.A, expressed his optimism about this public-private partnership between the two nations, which he said would strengthen their national ties on civil aviation platform.

Co-operative agreements between these two nations are not new to the world. Looking back the records, Boeing and Embraer had announced plans in July 2011 to jointly produce sustainable aviation jet fuel from sugarcane.

Later, in March 2012, global aviation industry witnessed the two aviators sign a MoU with Airbus to work together on the development of affordable aviation bio-fuels.

Riding the optimistic wave, both these partners foresee opportunities to reduce customers' operational costs and enhance fleet efficiency. Embraer's corporate presence in the U.S. for over 3 decades and Boeing's enduring partnership with Brazil for over 80 years reinforce the partnership spirit.

We are currently holding a long-term Neutral recommendation on Embraer. Also, Embraer has a Zacks #3 Rank, which translates into a short-term (1-3 months) Hold rating.

BOEING CO ( BA ): Free Stock Analysis Report
EMBRAER AIR-ADR ( ERJ ): Free Stock Analysis Report
LOCKHEED MARTIN ( LMT ): Free Stock Analysis Report
NORTHROP GRUMMN ( NOC ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: BA , ERJ , LMT , NOC



More from Zacks.com:

Related Videos



Most Active by Volume

  • $74.98 ▲ 5.18%
  • $8.32 ▲ 8.33%
  • $3.45 ▼ 0.29%
  • $36.17 ▲ 4.21%
  • $17.84 ▲ 0.34%
  • $97.03 ▼ 0.16%
  • $15.62 ▲ 0.64%
  • $35.50 ▼ 1.06%
As of 7/24/2014, 04:04 PM