Emerson Electric Co Receives Strong Buy Rating and Raised Price Target

Loop Capital's Chris Dankert raised their price target on Emerson Electric Co (NYSE: EMR) by 3.8% from $130 to $135 on May 11, 2024. The analyst maintained their Strong Buy rating on the stock.

Dankert's optimism stems from Emerson Electric Co's impressive performance in the second quarter of 2024. Dankert highlighted that enhanced organic sales growth and a favorable mix played a significant role in the company's solid performance. The analyst also noted that Emerson Electric Co's shift to 100% automation supports multiple expansion.

In Q2 2024, Emerson Electric Co reported earnings per share (EPS) of $1.36, surpassing the Zacks Consensus Estimate of $1.26 and Q2 2023's $1.09 by 25%. The company's revenue for the quarter stood at $4.38 billion, beating the Zacks Consensus Estimate by 2.02% and Q2 2023's $3.76 billion by 17%. Furthermore, Emerson Electric Co's operating cash flow and free cash flow both saw a substantial increase of 32% year-over-year.

Looking ahead, management provided guidance for Q3 2024 and FY 2024. For Q3 2024, Emerson Electric Co expects EPS in the range of $1.38 to $1.42 and revenue growth of 11% to 12.5%. For the full fiscal year 2024, the company anticipates EPS between $5.40 and $5.50, with revenue growth of 15% to 16%. Additionally, management forecasts operating cash flow of $3.1 billion and free cash flow of $2.7 billion for FY 2024.

Emerson Electric Co's President and CEO, Lal Karsanbhai, expressed satisfaction with the company's outstanding execution in Q2. Karsanbhai mentioned that sales growth, margin expansion, and earnings all exceeded expectations. The CEO also highlighted the company's confidence in updating its outlook for FY 2024, given the strong performance and relentless focus on execution.

Barclays analyst Julian Mitchell also weighed in on Emerson Electric Co on May 10, 2024. Mitchell raised their price target on the stock by 4.8%, from $105 to $110, while maintaining a Hold rating. It's worth noting that 72.7% of top-rated analysts currently rate EMR as a Strong Buy or Buy, with 27.3% considering it a Hold. No analysts recommend or strongly recommend selling the stock.

Since the release of Emerson Electric Co's latest quarterly report on May 8, 2024, the stock price has increased by 2.6%. Year-over-year, the stock has seen a significant rise of 40.1%, outpacing the S&P 500's 26.2% growth during the same period.

Chris Dankert, the Loop Capital analyst who raised the price target on Emerson Electric Co, is ranked in the top 15% out of 4,579 Wall Street analysts by WallStreetZen. Dankert specializes in the Industrials, Technology, and Energy sectors and boasts an average return of 19.6% with a win rate of 79.2%.

Emerson Electric Co is a multi-industrial conglomerate that operates in two segments: Automation Solutions and Commercial and Residential Solutions. The company's Commercial and Residential Solutions offers well-known household brands such as Copeland, InSinkErator, and RIDGID, while the Automation Solutions segment provides measurement instrumentation, valves, and actuators, among other products and services. Founded in 1890, Emerson Electric Co is headquartered in St. Louis, MO.

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