Nomura Securities on Emerson (EMR): Valuation Remains Attractive; Invensys Good Fit on Right Terms
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Price: $56.41 -1.62%
Rating Summary:
4 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
4 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Trade EMR Now!
Nomura Securities maintains a 'Buy' on Emerson (NYSE: EMR) price target of $64.00.
Analyst, Shannon O'Callaghan, said, "The idea that the Invensys process automation assets would be a good strategic fit for Emerson has been around for at least a decade, but is back in the news (Bloomberg 6/20/12, “Invensys Said to Weigh Options After Emerson Interest”). We like the strategic fit of the Invensys process assets, which would add scale to Emerson’s systems business in Process Management, but what happens to Invensys’ other two businesses and its pension liability make details of a potential deal structure important. EMR valuation remains attractive at an 8% discount to sector vs the 10-yr range of a 0-20% premium."
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 $46.02 yesterday, with a 52 week range of $39.50-$58.47.
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Analyst, Shannon O'Callaghan, said, "The idea that the Invensys process automation assets would be a good strategic fit for Emerson has been around for at least a decade, but is back in the news (Bloomberg 6/20/12, “Invensys Said to Weigh Options After Emerson Interest”). We like the strategic fit of the Invensys process assets, which would add scale to Emerson’s systems business in Process Management, but what happens to Invensys’ other two businesses and its pension liability make details of a potential deal structure important. EMR valuation remains attractive at an 8% discount to sector vs the 10-yr range of a 0-20% premium."
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 $46.02 yesterday, with a 52 week range of $39.50-$58.47.
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