Mizuho Securities Upgrades Emerson (EMR) to Buy, 'Playing the Barbell; Bear Arguments Well Understood'

Mizuho Securities analyst Brett Linzey upgraded Emerson (NYSE: EMR) from Neutral to Buy with a price target of $118.00.

The analyst comments "Upgrading EMR shares to Buy (from Neutral). Raising PT to $118 (from $95) after rising market multiples and re-rate prospects. Transformational portfolio actions now in full motion driving upshift in growth, margins Should begin to differentiate in '24+. Bear arguments now well understood. Shares have lagged dramatically following drastic portfolio shaping. Sensing investor angst could begin to settle down with investor reengagement in '24. Positioning stock as "barbell" play with steady long-cycle process/hybrid providing source of outgrowth as "short-cycle" divisional orders/sales recover beginning ~mid-year. Discrete automation, T&M and productivity (i.e. short-cycle bar end) comprise ~25% of mix. Raising '24E EPS to $5.20 (from $5.10) with upside headroom. Establishing new 2025E EPS at $5.80 on MSD."

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 $94.68 yesterday.

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