The investment bank’s analysts are bullish, at least for the 30 days into the show, calling it the “Air Show Trade“. Here is from their latest note on Embraer’s stock (NYSE:ERJ):

“Embraer’s share price also tends to outperform going into the major summer air shows. On average since 2001 Embraer’s share price has appreciated 3.8% prior to the start of each Paris or Farnborough Air Show, while the S&P has on average returned (2.2)%. The stock then gives back some of these gains in the 15 trading days after the show, declining on average 2.7% vs. S&P 500, which appreciates 1.2% on average. During the last 11 years the Air Show Trade worked eight out of 11 years, or 73% of the time. We believe the upcoming Farnborough Air Show (July 9-15) could provide investors an opportunity… we reiterate our Buy on [both Boeing] and Embraer.”

Tagged with:  
Share →