Goldman Sachs Lowers Numbers on Emerson (EMR), Keeps Buy Rating

Goldman Sachs lowered its price target on Buy-rated Emerson (NYSE: EMR) from $54 to $51 but maintained their Buy rating, as the company joined the ranks of multi-industry companies facing incremental demand weakness.

Emerson now expects Q1 organic revenue down 3-5% year-over-year versus the consensus about flat and Goldman's prior estimate of down 3.5%.

The firm lowered FY12/ CY12 EPS to $3.45/ $3.66 from $3.60/ $3.68, with FY1Q12 now $0.49 versus $0.59.

Goldman expects sentiment to remain subdued until visibility on a recovery in certain issues including inventory reductions emerges. However, they are keeping their Buy rating as near-term challenges appear macro-derived or addressable and they still favor the company's later-cycle exposure, longterm EM growth potential, and superior free cash and balance sheet optionality. They also like the 3.4% dividend yield, versus peers at 2%.

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 $46.97 yesterday.

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