Brazil’s Embraer Gains on Partnership With India’s Mahindra

Published 9 February 2024, 09:55:06 [BFW]

(Bloomberg) -- Shares of Embraer gain as much as 3.9% in Sao Paulo Friday after the jet maker announced a partnership with Mahindra & Mahindra in the development of the C-390 military transport aircraft in India.

Embraer signed an accord with Mahindra’s defense unit to jointly pursue Indian Air Force’s upcoming order for a medium transport aircraft, according to an exchange filing by the Indian company

The partnership is viewed as “positive” for Embraer as it gets closer to signing another “important C-390 sale, and will continue to bolster its defense and security backlog,” writes Lucror Analytics analyst Filipe Botelho​

“The company has the opportunity to further penetrate the Asian markets in collaboration with Mahindra, a renowned capital goods company that already boasts a regional footprint,” he adds

Shares trade for 22.59 reais as of 11:46 a.m. in Sao Paulo

Trading reached 2.28 million shares, compared with the average of 363,252; Bloomberg’s model estimates 10.9 million by the end of the day

36% of shares that traded were at the bid price and 64% were at the ask

By Leda Alvim