Morgan Stanley Sees Emerson Electric's View As Overly Conservative, Raises PT To $50 (EMR) - 2/8/2010 8:28:05 AM By Chip Brian, SmarTrend Analytics Team
2/8/2010- Morgan Stanley analysts believe that Emerson Electric's (NYSE:EMR) view will prove overly conservative and that its order book will continue to sequentially improve at a faster rate than expected following its annual investor meeting on February 5.
The bank said the overall tone of the meeting was somewhat cautious as management feels that recovery will be long and slow.
Analysts Scott Davis, Mike Stein, John R. Chappell, and Matt Gugino said, "Particular upside in HVAC for 2010 with full recovery in later cycle markets in 2011. Key theme of the meeting was EM presence, and EMR is industrial poster child for EM exposure. Data center opportunities and energy efficiency products (i.e. wind, nuclear) also highlighted as two areas of potential strong growth. We are raising our price target to $50."
Morgan Stanley maintains an "equal weight" rating on the company and sees fiscal 2010 EPS of $2.40, vs. the consensus estimates of $2.32, and fiscal 2011 EPS of $2.75, vs. the consensus estimates of $2.78.