BofA Upgrades Embraer On eVTOL Prospect

Embraer SA (NYSE: ERJ) sees a revenue market place of $200 billion for its eVTOL (electric vertical takeoff and landing) unit Eve, with 3 billion passengers and 50,000 aircrafts by 2035, in accordance to BofA Securities.

The Embraer Analyst: Ronald Epstein upgrades the ranking for Embraer from Neutral to Buy, whilst raising the selling price focus on from $8 to $20.

The Embraer Thesis: Business operations of eVTOLs could start off in about two several years and Joby Aviation estimates the global addressable market place to improve to all around $1 trillion by 2040, with a $500 billion prospect in the U.S. marketplace, Epstein claimed in the upgrade observe.

“We are assured on Eve’s solid placement in this nascent industry given Embraer’s know-how on building plane on finances and on plan, existing partnership with regional airlines, all over the world ops for output and servicing, and strong positioning in the US and Brazilian markets,” the analyst wrote.

“ERJ is currently exploring probable investors and opportunities that could accelerate development in the area,” Epstein mentioned, incorporating that there is “significant upside from Eve’s potential general public listing or substitute investment decision possibilities.”

ERJ Cost Motion: Shares of Embraer had risen by 2.86% to $16.17 at the time of publication Friday.

(Graphic: Rendering of EmbraerX eVTOL by using Embraer)

Hottest Rankings for ERJ

Check out Additional Analyst Scores for ERJ
Watch the Most current Analyst Rankings

See additional from Benzinga

© 2021 Benzinga.com. Benzinga does not offer expenditure tips. All legal rights reserved.