5 Most Undervalued Defense Stocks to Buy According to Analysts

3. Embraer S.A. (NYSE:EMBJ)

Forward P/E: 17.12

Embraer S.A. (NYSE:EMBJ) saw mixed analyst activity in recent weeks, with UBS lowering its price target on the stock to $65 from $69 while maintaining a Neutral stance on March 26. The revision reflected a more cautious near-term outlook despite continued interest in the company’s aircraft delivery trajectory and backlog strength.

On March 10, JPMorgan raised its price target on Embraer S.A. (NYSE:EMBJ) to $84 from $80 while maintaining an Overweight rating, citing improved post-Q4 model assumptions and attractive valuation levels. The firm highlighted that Embraer’s discount to peers is expected to narrow over time, supported by strong growth prospects, improving returns, and a record backlog.

Embraer S.A. (NYSE:EMBJ) is a Brazilian aerospace manufacturer engaged in the design, development, production, and sale of aircraft across commercial, executive, defense, and agricultural aviation segments. The company is headquartered in São José dos Campos, São Paulo, Brazil, and was founded in 1969.

The divergent analyst views highlight both short-term valuation caution and long-term confidence in Embraer S.A. (NYSE:EMBJ)’s structural growth story. Continued backlog strength and improving profitability metrics support the case for sustained re-rating potential as execution remains consistent.