UPDATE: Bank of America Raises PT on Embraer, States Appreciation of the USD

Bank of America analyst Ronald J. Epstein published a report on Embraer ERJ that raised the price target from $39 to $42 and reiterated a Buy rating. In the report, Bank of America said, "Post 4Q12 results, we are updating our model. We are raising our 2013 tax rate estimate to 35% from 25%. We note that ERJ has more assets than liabilities denominated in USD. This means that appreciation of the US dollar vs. the Brazilian Real could translate to a marked-to-market financial gain and may trigger higher taxes. We are increasing our operating profit margin to 11.7% from 10.3% to reflect lower SG&A cost." On Wednesday, Embraer closed at $35.47.