UPDATE: JP Morgan Downgrades Embraer SA to Neutral on Slower Jet Recovery
JP Morgan reduced its rating on Embraer SA (NYSE: ERJ) from Overweight to Neutral and lowered its price target from $37 to $30.
JP Morgan commented, "The stock is up 17% since bottoming on July 11 after a disappointing backlog report (vs 9% for the S&P 500 and 15% for the Bovespa) and we believe it is now more fairly valued. The issue that prompted the July selloff is unresolved: weak demand for the commercial jets that contributed 58% of sales last year. We see cyclical and structural challenges even if orders expected from US airlines in the months ahead provide a reprieve."
Embraer SA closed at $27.01 on Friday.
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