Emerson Electric Company, the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Andrew Obin from Bank of America Securities reiterated a Buy rating on the stock and has a $165.00 price target.
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Andrew Obin has given his Buy rating due to a combination of factors that highlight Emerson Electric Company’s potential for growth and value. Despite a recent dip in stock price, Obin believes the market is underestimating the company’s order growth and pricing power, particularly in the Test & Measurement segment, which saw a significant year-over-year increase in orders. Additionally, Emerson’s strong position in the US power generation market, with its Ovation controls managing a substantial portion of electricity generation, is expected to drive further order growth.
Furthermore, Obin notes the company’s strategic investments and acquisitions, such as those in National Instruments and AspenTech, which are anticipated to enhance incremental margins and synergies. The forecasted growth in adjusted EPS, driven by organic growth and margin expansion, supports the Buy rating. Emerson’s involvement in the US reshoring trend, particularly in the Life Sciences and Pharma sectors, also presents a promising catalyst for future performance. These factors collectively justify the reiterated Buy rating and the price objective of $165.
Obin covers the Industrials sector, focusing on stocks such as Eaton, Honeywell International, and Ametek. According to TipRanks, Obin has an average return of 14.9% and a 65.09% success rate on recommended stocks.
In another report released today, KeyBanc also reiterated a Buy rating on the stock with a $155.00 price target.