UPDATE: Canaccord Genuity Initiates Coverage on Emerson Electric Co. with Hold Rating, $60 PT on Tougher Growth Compares

In a report published Thursday, Canaccord Genuity analyst John Quealy initiated coverage on Emerson Electric Co. EMR with a Hold rating and $60.00 price target. In the report, Quealy noted, “While Emerson has benefitted from a rebound in macroeconomic activity, tougher growth compares and a focus on optimizing assets near term keep expectations in check (and risk/reward more balanced). The company's long-standing global scale and market diversification are durable competitive advantages, with international business ~59% of the mix (from ~38% in 2000), driven by impressive exposure to emerging markets at ~36% of total sales. Behind the big numbers, Emerson remains focused on innovation, with a commitment to R&D (~3.5% of sales in '15E, ~ $1B) and building out services and solution selling to leverage the large installed base. Importantly, energy efficiency remains a key theme across the platform.” Emerson Electric Co. closed on Wednesday at $55.49.