Future ForecastsThe backdrop positions the equity for negative revisions and should EMR miss second half guidance, growing concern on future forecasts and the multiple to be derated is expected.
Guidance ConcernsEMR organic guidance is viewed as overly aggressive with management calling for a high single-digit organic exit rate, a sharp acceleration despite sluggish order trends and softening Process capex.
Order TrendsEMR Test & Measurement orders unexpectedly inflected higher but this was attributed to a Tariff pull forward rather than improving demand.