Nomura Securities Maintains a 'Buy' on Emerson (EMR); F2 Review; Don’t Throw in the Towel Yet

May 2, 2012 10:05 AM EDT
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Price: $58.69 +0.44%

Rating Summary:
    3 Buy, 20 Hold, 6 Sell

Rating Trend: = Flat

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    Up: 29 | Down: 29 | New: 23
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Nomura Securities maintains a 'Buy' on Emerson (NYSE: EMR) price target of $64.00.

Analyst, Shannon O'Callaghan, said, "Despite feeding the understandable negativity near-term, the 2Q results tracked pretty close to our expectations, and we think the turn is finally here. We expect Emerson to go from having among the worst organic growth rates in the sector to among the best and we think they can actually hit their new guidance, which would effectively be an upside surprise at this point. Process delivered 22% sequential revenue growth and 44% sequential incremental margins, despite shutdowns as they worked through post-Thailand supply chain issues. Process is operating at full strength in April and we expect it to have a very strong second half (at nearly 40% of segment profit, Process is the single biggest driver to guidance). Network Power was in line with our estimate and had the first y/y margin improvement ex-restructuring since Chloride closed."

For an analyst ratings summary and ratings history on Emerson click here. For more ratings news on Emerson click here.

Shares of Emerson closed at $49.18 yesterday.

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