UBS downgrades Embraer to Sell on ‘overoptimistic’ market

UBS last night downgraded Embraer (ERJ) to Sell from Neutral with a price target of $32, up from $29. The firm thinks the market is “overoptimistic” and pricing in some optionalities in its base case for 2025. The competitive environment is unfavorable for Embraer, as Brazil and other Latin American locations can not provide competitive advantages for its projects, the analyst tells investors in a research note. As such, UBS believes the company’s 2025 may disappoint investors.