Back to top

Analyst Blog

Brazil based commercial aircraft manufacturer and supplier Embraer SA (ERJ - Analyst Report) recently announced its entry  through a strategic venture with France based Zodiac Aerospace in Mexico. The deal was highly consistent with Embraer’s strategy of enlarging its client base and services in the international market.

Under the alliance, Embraer and Zodiac, a producer and dealer of aerospace tools, will be jointly engaged in designing and developing cabin interior essentials for the E-170 and E-190 regional aircraft through its operational unit in Mexico. Moreover, with the expectation of creating more jet interiors in the years ahead, Embraer is emphasizing improvement of its aircraft arrangement by advancing the operational facility of its biggest aircraft within 2018 and launching of the latest engines.

Of late, Embraer established several strategic partnerships to extend its businesses beyond Brazil such as in China, Portugal and the United States. The company’s latest venture which would most likely be a milestone in Embraer’s long-term operations will strengthen its foothold in the Mexican market. Moreover, it is anticipated that such strategic deals would provide more stability to the company’s investment stream ensuring future development.

Brazil-based Embraer’s product portfolio supports strong customer orders worldwide. Its diversified global footprint offers fierce competition to industry operators of the likes of Boeing Co. (BA - Analyst Report), Erickson Air-Crane Incorporated (EAC - Snapshot Report) and Northrop Grumman Corporation (NOC - Analyst Report).

The current Zacks Consensus Estimate for the second quarter of 2012 is 67 cents and for fiscal 2012 is $2.19. The company currently retains a Zacks #3 Rank, which translates into a short-term “Hold” rating. However, we are maintaining a long-term “Neutral” recommendation on the stock.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%