Why Shares of Embraer Are Up Today
Shares of Embraer (NYSE: ERJ) spiked 17% on Friday following a report that a Chinese manufacturer has expressed interest in joining forces with the world's third-largest commercial airplane manufacturer. Embraer was left at the altar by Boeing (NYSE: BA) just last month, but it appears to have other options.
Brazil's Embraer is a maker of small commercial jets, and until recently had a deal in place to sell 80% of its commercial operations to Boeing for $4.2 billion. That valuation arguably did not reflect the post-COVID-19 reality of commercial aerospace, with airlines scrambling to cut costs and cancel expansion plans. But there is still value in Embraer's portfolio.
Image source: Embraer.
Source Fool.com
