Citi analyst Andrew Kaplowitz has maintained their bullish stance on EMR stock, giving a Buy rating on May 8.
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Andrew Kaplowitz has given his Buy rating due to a combination of factors that highlight Emerson Electric Company’s potential for resilient growth and profitability. The company is expected to maintain strong earnings, supported by a robust gross margin projected to exceed 50% in FY24. Additionally, Emerson’s strategic initiatives, such as the $100 million cost synergy target following the AspenTech acquisition, are anticipated to enhance its profitability.
Despite concerns about potential slowdowns in certain segments, Kaplowitz views the recent devaluation of Emerson’s stock as excessive. The company’s favorable position in long-term growth sectors and its improved earnings quality are seen as underappreciated. With a target price raised to $133, Kaplowitz believes that Emerson’s upcoming events, like the Exchange 2025, could further boost investor confidence and act as a catalyst for the stock’s performance.