Embraer rally continues, BE Aerospace up strongly, Boeing and EADS report gains – Supplier Share Wra
After reporting better second quarter results late last week, Embraer's stock price has climbed almost 20% in three days, the sharpest spike since Dec-2008, to finish trading yesterday at USD20.88 per share, a nine month high. The manufacturer's better than expected margins and reaffirmation of its full year guidance prompted several credit analysts to upgrade the stock.
Larger aircraft manufacturers were also up, trending slightly ahead of good days on US and European markets, with Boeing gaining 2.1% and EADS up 1.6%
B/E Aerospace has also been trading strongly over the past few days, gaining 6.1% on Monday to hit a ten-month high of USD17.14 per share. The stock has been buoyed by expectations of a resurgence in aerospace ordering, as carriers that have run down inventories to begin to order aerospace equipment and components.
B/E Aerospace expects its component distribution business will be among the first to benefit from airlines beginning to revamp depleted inventory levels. The stock has gained more than 130% for the year-to-date.
Selected Aviation suppliers' daily share price movements (% change): 03-Aug-09
Source: Centre for Asia Pacific Aviation & Yahoo! Finance