CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We upgrade our recommendation on EMR shares to Buy from Hold ahead of earnings given our view that shares are currently undervalued. Additionally, we view EMR’s portfolio transformation positively and see it enhancing the company’s long-term growth trajectory. EMR has been exiting lower growth businesses and dialing in its focus on building out a cohesive automation portfolio that is aligned with several secular investment drivers, including factory nearshoring, energy security, decarbonization, and digitalization. Favorable pricing, easing supply chain constraints, and improving backlog conversion should back results in the coming quarters, in our view. We adjust our 12-month target to $114 from $102 following an updated outlook for FY 2024 results, 21.4x our 2024 EPS estimate of $5.33 (up from $4.75). We see upside in shares currently, with an implied gain of about 24% from today’s price relative to our 12-month target of $114.