Nomura Securities Maintains a 'Neutral' on Emerson (EMR); Q1 Review
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Price: $163.17 -0.29%
Rating Summary:
26 Buy, 20 Hold, 2 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
26 Buy, 20 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Emerson (NYSE: EMR) price target raised $2 to $55.
Analyst, Shannon O'Callaghan, said, "Emerson just lived through a brutal 1Q, where everything that could go wrong seemingly did. The main pressures were driven by Thailand electronics availability and inventory corrections in Network Power and Climate, both of which are fluid, so 2Q is a moving target and a source of risk. We were already below prior FY12 EPS guidance and our maintained estimate puts us at the low end of the new, reduced guidance of $3.45-$3.60 (vs. prior implied $3.53-$3.66). Process should come back quickly as electronics become available, and are added to already produced products sitting in inventory, while getting past Network Power and Climate issues could take longer. Lots of negatives in 1Q, but it should get better from here. We raise our price target to $55 based on 16x (prior 15x) our 2012 EPS estimate of $3.45, reflecting better sector multiples and what we view as understated earnings power in 1Q."
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 $51.92 yesterday.
Analyst, Shannon O'Callaghan, said, "Emerson just lived through a brutal 1Q, where everything that could go wrong seemingly did. The main pressures were driven by Thailand electronics availability and inventory corrections in Network Power and Climate, both of which are fluid, so 2Q is a moving target and a source of risk. We were already below prior FY12 EPS guidance and our maintained estimate puts us at the low end of the new, reduced guidance of $3.45-$3.60 (vs. prior implied $3.53-$3.66). Process should come back quickly as electronics become available, and are added to already produced products sitting in inventory, while getting past Network Power and Climate issues could take longer. Lots of negatives in 1Q, but it should get better from here. We raise our price target to $55 based on 16x (prior 15x) our 2012 EPS estimate of $3.45, reflecting better sector multiples and what we view as understated earnings power in 1Q."
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 $51.92 yesterday.
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