JP Morgan Reiterates Neutral on Emerson Electric

JP Morgan maintains its Neutral rating on Emerson Electric

following an initial take on the company's F1Q. JP Morgan notes, "The quarter was a little weaker than even lowered expectations, and we struggle to understand how the company hits guidance, which “surprisingly” frames consensus. In short we have several issues here. First, Thailand is less of an impact than expected, showing the deterioration here is fundamental in nature. Whether this is “structural” or not is an aspect of the argument (bolstered by data center being down), but the facts are that to support standing guidance they needed an “adjusted” number of ~$0.76 – adjusting the $0.16 for Thailand/medicare only gets us to $0.66, supportive of ~$3." EMR closed at $53.37 a share on Monday.