UPDATE: Deutsche Bank Maintains Embraer $41 PT and Buy Rating on Solid 4Q Results

In a report published by Deutsche Bank, analyst Myles Walton, CFA maintained his Buy rating and $41 price target on Embraer

. Deutsche Bank reported that, “ERJ reported very strong 4Q12 operating results (note: we do not focus on EPS on a Qto- Q basis given significant FX-driven volatility in the tax rate). Gross profit was $66.4M better than our forecast ($466M vs. our estimate of $400M) and resulted in a 200bps y/y expansion in gross margin (to 24.5% vs. our 21.5% estimate) on largely in-line revenue ($1.9B vs. our $1.86B estimate). Slightly higher operating expenses ($238M vs. our $209M estimate) drove a more modest EBIT beat, but still an impressive 12% ebit margin in the Q vs. our 10.3% estimate. Full year EBIT margin came in at 9.9% (vs. our 9.4% estimate and guidance of 9-9.5%), pointing to likely upside to unchanged 2013 guidance of 9-9.5% which was largely based on flat y/y performance (we'd expect mgmt to address this on the call).” Shares of closed at $35.50 on Wednesday.