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Embraer shares rose 127% in 2024, standing out on the Ibovespa. The US$22,7 billion backlog and aircraft deliveries surprised analysts. With buy recommendations from major financial institutions, the company's future looks promising.
A real financial whirlwind took over the market this Monday (21) and the protagonist of this story is Embraer
Investors could hardly believe it when shares of the Brazilian aircraft manufacturer stood out on the Ibovespa, achieving an impressive 4,3% increase in a single trading session.
The numbers are simply breathtaking!
The operational data revealed by Embraer last Friday (18) left analysts and investors in a state of euphoria.
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According to information from the company, the backlog reached no less than US$ 22,7 billion, a significant growth of 33% compared to the same period of the previous year.
This data reveals the growing demand for its aircraft and shows that Embraer continues to gain trust in the sector.
Increasing deliveries
Additionally, the company reported the delivery of 16 commercial aircraft units, a slight increase from the 15 deliveries in the same period last year.
In the executive segment, things were even more encouraging, with 41 aircraft delivered.
These positive results were enough to boost Embraer shares, which, in the last six months, have already accumulated an appreciation of around 59%.
Since the beginning of 2024, the company's shares (EMBR3) have already accumulated an impressive 127% increase, consolidating its position as the biggest gainer on the Ibovespa index.
Market expectations
The financial market reaction was highly positive, reflecting the confidence that investors have in the company.
According to BBA analyses, the company has a demand scenario that appears favorable.
“Although we recognize some risk in the company's commercial delivery guidance, we believe that, with the general scenario of positive demand and the good profitability trend, the company can exceed expectations,” said analysts at the institution.
Additionally, BBA maintained its 'outperform' recommendation — which equates to a buy recommendation — for Embraer's American Depositary Receipts (ADRs), setting a price target of $43.
Analysis from other institutions
BTG Pactual also praised the numbers presented, indicating that Embraer's guidance is “achievable”.
Analysts highlighted their confidence in the company's ability to meet its targets, not only in terms of deliveries, but also in other important financial metrics, such as EBITDA and cash generation, supported by its operational leverage.
Citi's assessment of Embraer's figures was also positive. Analysts signaled a “promising future” for the company.
Although deliveries and order backlogs were slightly below projections, the quality of commercial deliveries positively surprised analysts.
As such, Citi has opted to maintain a buy recommendation for the company's ADRs, with a target price set at US$40.
Continuous growth in the airline industry
This robust growth is not an isolated phenomenon. The aviation sector as a whole has experienced a significant recovery after the challenges faced during the pandemic.
The demand for air travel has increased, and companies are adapting to this new scenario.
With the intensification of global trade and the need for transportation of cargo and people, Embraer, with its wide range of aircraft, is well positioned to capitalize on this trend.
Investment in technology and innovation has also been a key differentiator for the company. Embraer has continually invested in research to develop more efficient and sustainable aircraft, which can help attract even more customers and expand its market share.
The role of technological innovations
The company has focused on producing aircraft that not only meet current demands, but also adapt to the future needs of the industry.
Innovation in design and the adoption of green technologies are factors that can improve Embraer's image and its competitiveness in a market that is increasingly environmentally conscious.
Aircraft models that offer greater fuel efficiency and lower carbon emissions are attracting the attention of airlines looking not only to save operating costs but also to meet regulatory requirements and consumer expectations.
What to expect?
With an impressive upward trajectory, Embraer shares not only marked the biggest rise on the Ibovespa in 2024, but also reaffirmed the company's position as one of the main players in the aeronautical sector.
Following this growth, investors and analysts will be paying close attention to upcoming earnings releases, which promise to continue generating high expectations.
The next financial results report may provide new insights into the company's performance, which could further influence shares.
The question that remains is: What will be Embraer's next steps in the competitive aviation market?
