The announcement that Embraer will supply up to 100 aircraft to be sold through the Ascent platform, a Singapore company that operates an air taxi service, made the Brazilian company’s shares close up 5.3% on Monday (23), reaching R$ 20.92. The partnership continued to pay off for the company, which closed the session on the Stock Exchange this Tuesday (24) with an increase of 8.13%.
The partnership is one of several made by Eve Urban Air Mobility, an Embraer company that is developing so-called flying cars and electric engines for aircraft. For the experts heard by UOL, the initiatives tend to value the company’s shares, but the bulk of the result – surprising so far – has depended on other factors. See below if the flying cars are enough to hold the company high.
Innovations start to be considered in the share price
Henrique aestheter, analyst of Guide Investments, assesses that the innovations presented by Embraer are already starting to be considered in the company’s share prices — this is what the market calls pricing.
The analyst highlights, however, the market reassessment of the company after Eve’s proposed merger with the North American Zanite Acquisition Corp, announced in June and whose negotiations are ongoing. For him, the assessment of the company’s value after a possible business combination was above expectations.
The analyst also forecasts an improvement in results with the gradual resumption of domestic tourism.
“At the beginning of the pandemic, companies were expected to recover before Embraer did, after all, Embraer depends on their demand. However, this recovery took longer due to the isolation and containment measures for the pandemic. On the other hand, international demand heated up earlier. of the hour, especially in the United States and Europe, more than made up for the weakening of the domestic environment,” says Esteter.
In the second quarter of this year, the company presented the first adjusted net income in more than two years, of R$ 213 million.
Traditional planes must hold valuation
to Roberto Nemr, analyst of Ohmresearch, the announcement of partnerships for the development and use of flying cars must be accompanied by something more urgent for Embraer’s actions to maintain their valuation: the resumption of sales of traditional aircraft.
“Airlines need to improve their results to buy more planes, so they have to resume demand and, for that, the end of the pandemic is essential,” he says.
Nemr highlights that the 137% appreciation of the shares throughout the year is also related to the discounted amount in relation to the period prior to the pandemic.
The analyst’s expectation is that the papers return to the R$25 range.
“has a upside potential reasonable ahead and the exchange rate issue may also weigh. As an exporter, Embraer gains when the real rises above R$ 5.30″, he says.
He believes that an eventual merger of the Brazilian company with Zanite may have a new positive impact on actions beyond the Target Price defined today, of R$ 25.
mario Mariante, chief analyst gives Planner Brokerage, says that the valuation of Embraer shares has already passed the most vertical phase of the rise.
“The share has already appreciated 136.4% in the year. Even with the improvement in the company’s numbers, one should not expect this escalation of appreciation to persist,” he says.