Morgan Stanley Maintains Overweight on Emerson Electric

Morgan Stanley remains Overweight-rated on Emerson Electric

as the company releases quarterly EPS that were largely in line with expectations. Morgan Stanley comments, "EMR reported $0.50 EPS as expected, although there is not much to like in these numbers, with core growth declines in all segments aside from Tools & Storage. The good news is that it was well flagged and so expected, with management only modestly adjusting down its FY12 sales outlook (by 1ppt), and provided a formal EPS range of $3.45-3.60 - an adjustment of $0.05-0.10 to the prior framework, of which $0.02-0.04 is being driven by higher restructuring investment of $125m." EMR closed at $53.37 a share on Monday.