UPDATE: Langenberg & Company Downgrades Emerson Electric Company
Langenberg & Company downgrades Emerson Electric Company (NYSE: EMR) from Buy to Hold and reiterated the $60.00 price target.
Langenberg & Company noted, "Emerson shares are up 16% since their November '12 low and now trade within 3 points of our $60 target price, translating into a 6% FCF on our fiscal '13 estimate of $3.60/share and 100% cash conversion. Catalysts are now limited. Our fiscal '13 estimate of $3.60 is up $0.21 for the full year - $0.12 already came home as anticipated in F1Q. Deal activity should be muted with a $400-500M placeholder for the fiscal year and Embedded Power (about 1/4) of Network Power on the block for divestiture. We could be leaving a few points on the table from an accelerated recovery in China or HVAC but have cheaper ways to play those themes."
Emerson Electric Company closed at $56.91 on Tuesday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.