UPDATE: Oppenheimer Upgrades Emerson To Outperform, Raises PT To $74

Oppenheimer is upgrading shares of Emerson

to Outperform from Perform, based on: valuation in line with other industrials in coverage vs. historical premium; best-in-class developing markets exposure and breadth of other exposures with secular growth characteristics; above average 2011 earnings growth; and significant economies of scale to guard long-term leadership positions globally. Emerson's Network Power trailing three-month organic orders through February were flat to down 5%, vs. 12-13% organic guidance. Oppenheimer believes data center backlog provides some visibility support, with primary weakness in embedded power, which can face rapid demand shifts, so a timing explanation could bridge the current differential vs. guidance. Oppenheimer views longer-term through-the-cycle visibility as currently under-appreciated. EMR's 34% emerging markets exposure and secular demand growth elements around PM, IA, CT, and NP are all drivers. Emerson closed Tuesday at $59.58