UPDATE: Morgan Stanley Reiterates On Emerson Electric On Mixed Factors

In a report published Wednesday, Morgan Stanley analyst Nigel Coe reiterated an Equal-Weight rating on

, and raised the price target from $68.00 to $69.00. In the report, Morgan Stanley noted, “EMR's 2Q results were essentially in line with its April 23rd pre-announcement, with lower-than-expected top-line growth largely attributed to weakness in US Resi (partly driven by weather headwinds) and delays in Process project implementation as major O&G customers look to become more capital efficient. "Encouragingly, mgmt noted that strength in March orders (up 15%+ Y/Y) has continued into April (+8%), with growth expected to remain in the HSD range for a few more months. However, CEO Dave Farr also highlighted during the call that ‘project execution' is the key for growth to accelerate into 2H14, i.e. the company will need to convert orders into revenues. "As such, we believe it is still too early to get excited about EMR's recent order strength, particularly given the long-cycle nature of its PM and NP businesses and the apparently larger and potentially lumpier nature of recent project wins.” Emerson Electric closed on Tuesday at $66.56.