Embraer shares rise on orders for electric aircraft, analyst upgrades

Texas News Today

FILE PHOTO: The logo of Brazilian airplane manufacturer Embraer SA is seen at its headquarters in San Jose do Campos, Brazil on February 28, 2018. Reuters / Roosevelt Casio / FILE PHOTO

September 23, 2021

Gabriel Araujo

SAO PAULO (Reuters) – Brazilian aircraft maker Embraer SA announced on Thursday that its subsidiary Eve has signed a memorandum of understanding to sell 100 electric aircraft to the Bristow Group, taking Embraer’s shares higher. Taxi “Sector.

Brazil-listed Embraer shares, which was upgraded from “neutral” to “buy” by a Goldman Sachs analyst, rose 11.75% to R$23.80 in early trading in Sao Paulo.

Embraer said in a securities filing that Eve will deliver the first vertical takeoff and landing (EVTOL) aircraft to Bristol by 2026. Both companies will develop urban mobility models for operating aircraft, focusing on areas such as regulatory development, EVTOL certification and autonomous. . Surgery.

Analysts at Goldman Sachs said in a market report that given the market capitalization of other listed EVTOL companies, the EVTOL business of its subsidiary Eve has not yet been priced on Embraer shares.

Goldman has upgraded Embraer to “buy” and increased its ADR’s new 12-month price target by 50% to $23. We also focused on the strength of the Company’s business and regional jet end markets, increased operating performance and exposure to attractive valuations.

Regarding the deal with Embraer, Bristow’s President and Chief Executive Officer, Chris Bradshaw, said the deal could “reshape the market for all-electric vertical lifts with zero emissions” as EVTOL is underway. He said that it sets the roadmap for development.

He also believes the move could reduce operating costs in the industry and sees it as an expansion into Bristow’s new potential end market.

Earlier this week, Eve announced that it would partner with Helipus to offer an electric flight taxi service in Europe. This too is scheduled to start in 2026.

(Reporting by Gabriel Araujo, edited by Jason Neely and Mark Porter)

Embraer shares rise on orders for electric aircraft, analyst upgrades

Source Link Embraer Electric Aircraft, Analyst Soars Upgrade Order

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