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UPDATE: Credit Suisse Raises OT to $60 on Emerson Electric Company on Conservative Guidance

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Credit Suisse maintained Emerson Electric Company (NYSE: EMR) with an Outperform rating and raised the price target from $57.00 to $60.00.

Credit Suisse said, "EMR's shares reacted in a lackluster fashion to the Q1 earnings (48% incremental margins and 6% organic growth are clearly disappointing relative to the EE/MI average) … How bad will the 2nd half margins really be? EMR's guidance implies minimal / no margin growth y-o-y in the 2H13. Given the 'mix' issues weighing on the Q1 margins (which could reverse, particular in NP due to China, and Telecom, and in PM as maintenance activity picks up), the potential for better 2H volume leverage (three of the five segments saw revenues down y-o-y in Q1), and cost-cutting (restructuring charges were 29% higher in CY12 than CY11), we think that this could prove conservative."

Emerson Electric Company closed at $56.91 on Tuesday.

Posted-In: Credit SuisseAnalyst Color Price Target Analyst Ratings


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