Brazilian Aerospace? It's Worth Watching, These Analysts Say

For traders looking into emerging markets for ideas, aerospace-related Brazilian stocks that analysts like are worth keeping an eye on.

Gol Linhas Aereas Inteligentes

Gol Linhas Aereas Inteligentes S.A. GOL is a $1.58 billion market cap holding company engaged in the air transportation sector. The stock gained more than 20 percent over the last year, versus the S&P 500’s 11.76 percent return, but analysts still see it going higher.

In late-July, Bank of America upgraded the stock from a Neutral to a Buy, setting an $8 price target. Later, in September, Morgan Stanley also boosted its rating, from Equal-weight to Overweight, and fixed an $8.20 price target. Then, on October 28, Raymond James upped its recommendation from a Market Perform to an Outperform, but set the price target at only $6.

Related Link: 2 Alternative Ways To Play Latin America

Despite the variance, all of the price targets imply some kind of upside potential for the stock, which currently trades near $5.30.

Embraer

Embraer-Empresa Brasileira de Aeronautica ERJ is an even larger company ($6.73 billion market cap) engaged in the manufacturing of aircrafts. Over the past couple of months, two major Wall Street research firms issued ratings for the stock.

Most recently, Bank of America reiterated a Buy, escorted by a $45 price target. A few days earlier, RBC Capital downgraded the stock from an Outperform to a Sector Perform, setting a $40 price target. Nonetheless, the latter still implies some (about 8 percent) upside from the current stock price, barely above $37.

In late-June, Deutsche Bank had recommended Buying the stock, fixing a price target of $44.

Image credit: Gleb Osokin, Wikimedia