Sell Boeing, Buy Embraer (Video)

Jul. 03, 2018 2:38 PM ETBA, ERJ20 Comments
Sven Carlin profile picture
Sven Carlin
15.1K Followers

Summary

  • Embraer could be now, where Boeing was just a few years ago.
  • Embraer's investment cycle is coming to an end. Margins, cash flows and earnings should improve. The deal with Boeing is just another positive.
  • The risks include Brazilian politics but also American economics.

There is a lot of speculation about what will happen between Embraer (ERJ) and Boeing (BA). However, speculation aside, ERJ still offers a tempting risk-reward opportunity. A fundamental comparison with BA shows that ERJ is significantly undervalued.

The company has been investing a lot into developing new products over the past few years and 2019 should be the turnaround year.

Please enjoy the video where I give an overview of ERJ, discuss the risks involved in an investment and compare it to BA.

This article was written by

Sven Carlin profile picture
15.1K Followers
Passionate about value investing! Education: PhD - A Real Value Risk Estimation Model for an Emerging Market Experience: Investment manager at Let it grow investments, Netherlands Assistant professor at the University of applied sciences Amsterdam, Netherlands Data researcher at Bloomberg, London UK

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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