Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Brazilian airplane maker Embraer
So what: Wall Street giant Goldman Sachs added Embraer to its "conviction buy list" today, noting that the stock has significant upside to Goldman's $39 price target. Goldman also pointed out that regional and business jets tend to lag in a recovery and will likely end up posting gains that will surprise investors to the upside.
Now what: Admittedly, I'm a bit partial to Goldman Sachs, and so an upgrade from there -- particularly an upgrade to its conviction list -- gets my gears turning. Like any analyst upgrade though, the analyst's positive view is a good reason to tune into the stock, but it's not the lone reason to buy. With a forward price-to-earnings multiple of just over 16 and a decent dividend, this seems like a stock well worth keeping an eye on.
Want to keep up to date on Embraer? Add it to your watchlist.
