Emerson (EMR) PT Raised to $155 at Loop Capital

Loop Capital analyst Chris Dankert raised the price target on Emerson (NYSE: EMR) to $155.00 (from $130.00) while maintaining a Buy rating.

The analyst commented: "We reiterate our Buy rating and raise our EMR target price to $155 ($130 prior) reflecting slightly higher ests along with greater conviction in the multiple expansion story given clarity around capital deployment plans. Increased profitability aided by strategic portfolio actions (54% pro forma GM vs. FY21 GM of 41.5% and peer ROK GM of 39% during FY24) support cont'd multiple expansion. Furthermore, we see huge opportunity around Emerson’s Enterprise Operations Platform (EOP) approach. We began to see signs of this strategy last year at the ‘Exchange Immerse’ event (LINK), which demonstrated both the depth of integration between EMR and AspenTech, as well as the compelling value proposition associated with the push for a software-defined approach to data and operations. Bringing field data into a centralized data pool and control suite can unlock huge efficiency gains for customers over the traditional siloed approach. We see this as the equivalent of shifting from analog to ‘fly-by-wire’ technology in aerospace; or a “Manufacture-by-Wire” approach. Aided by portfolio changes, exposure to secular tailwinds, robust FCF and the aforementioned software-centric approach, we see further upside opportunity in EMR shares."

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