UPDATE: Credit Suisse Downgrades Emerson (EMR) to Neutral

August 19, 2016 6:38 AM EDT
Get Alerts EMR Hot Sheet
Price: $50.11 -0.08%

Rating Summary:
    3 Buy, 18 Hold, 8 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 14 | Down: 11 | New: 8
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(Updated - August 19, 2016 10:48 AM EDT)

Credit Suisse downgraded Emerson (NYSE: EMR) from Outperform to Neutral with a price target of $57 (unchanged). The change follows news it will acquire Pentair’s Valves & Controls business for $3.15 billion. Analyst Julian Mitchell said he sees few catalysts.

"Our TP remains $57, and our EPS estimates (on the current EMR basis) are unchanged; we show inside our pro forma forecasts including PNR V&C. While we think the deal has solid strategic logic, EMR has now unveiled many of the strategic moves which we anticipated in our report in April 2015 (‘Accelerated strategic change’), and the stock is now close to our TP. Following the plethora of recent portfolio announcements from the company, the relative paucity of upcoming catalysts (we do not expect further large imminent acquisitions or divestments), and the stock’s valuation multiple recovery YTD, we view the risk/reward as fairly balanced," said Mitchell.

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 $54.67 yesterday.

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