Embraer S.A. (NYSE:EMBJ) is an undervalued aerospace and defense stock to buy. On May 11, Reuters reported that Embraer S.A. (NYSE:EMBJ) is in talks with Colombia and Chile to sell them its C-390 military transport aircraft.
The company has been stepping up output as it seeks to meet growing demand abroad. By targeting other Latin American nations, Embraer SA also hopes to take on competitors in the sector, such as Lockheed Martin, through foreign sales.
In Latin America, it faces significant headwinds stemming from the long timelines required to complete sales campaigns, driven by budget approvals and procurement processes. Nevertheless, the company could reach a deal more quickly in Colombia, as the country’s president, Gustavo Petro, is trying to modernize the military fleet.
In addition to pursuing sales opportunities in Latin America, Embraer SA has also inked an order of up to 20 C-390s from the United Arab Emirates. It marks the first sale in the Middle East, fuelled by the recent US-Iran War.
Embraer S.A. (NYSE:EMBJ) is a major Brazilian aerospace conglomerate that designs, manufactures, and sells aircraft for commercial, defense, and executive use, and provides after-sales services and support. As the third largest producer of civil aircraft in the world—after Boeing and Airbus—the company focuses heavily on regional, high-performance jets.
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