Empresa Brasileira de Aeronautica S.A.'s (Embraer) aircraft deliveries increased marginally y-o-y in 2Q 09 to 56 aircraft. Moreover, the company's order book has remained firm at the end of 2Q 09. Therefore, given the strong order book and the recent decline in the ADR price, we upgrade the ADR from a HOLD to a BUY. We will reassess our target price and rating in our 1Q 09 update report. Although we now expect a negative currency impact on the Brazilian…

Embraer-Empresa Brasileira de Aeronautica S.A.’s (Embraer) 1Q 09 revenues were in line with our estimate, while profitability was significantly below estimate due to higher cost of sales and services and higher-than-anticipated income tax expenses. However, given the improvement in operating performance, expectations of declining costs due to a lower workforce, and current price levels, we do not anticipate a change to our BUY rating for the ADR (1 ADR = 4 Brazilian shares)....

Empresa Brasileira de Aeronautica S.A.’s (Embraer) aircraft deliveries declined y-o-y in 1Q 09, reflecting weakness in the aviation industry in light of the prevailing economic slowdown. However, given the company’s expectations of higher deliveries for full year in 2009 and current price levels continuing to support a BUY, we do not anticipate a change to our BUY rating for the ADR. We will reassess our…