(Bloomberg) -- General Electric Co.’s Jeffrey Immelt, chairman and chief executive officer since 2001, may step down within the next year as investors seek change at the industrial giant, according to Barclays Plc.
(Bloomberg) -- Emerson Electric Co. Chief Executive Officer David Farr may need to start thinking big.
Since taking over as head of the St. Louis-based industrial conglomerate almost 15 years ago, Farr hasn’t completed a public takeover of more than $2 billion, according to data compiled by Bloomberg. Meanwhile, rivals such as Eaton Corp. and Schneider Electric SE have made bigger purchases to strengthen and expand their core businesses -- and their shares have fared better.
Now Farr, who just had his bonus cut, says he’s willing to consider larger deals. That may be exactly what the $40 billion company needs to accelerate sales growth and boost its lagging stock, said Mark Douglass of Longbow Research.
“Investors are starting to get anxious,” Douglass, an Independence, Ohio-based analyst, said by phone. “They just want them to do something more with their capital than just dividends and share repurchases. It needs acquisitions.”
As low crude-oil prices crimp results at the company’s largest unit, which provides processing controls and software to oil producers, Emerson’s small presence in discrete automation - - the equipment and software for assembly lines -- has become a more glaring gap in its portfolio. That may drive it to a takeover of National Instruments Corp., a $4 billion company, or even Mitsubishi Electric Corp.’s factory-automation division
"Dow Chemical (NYSE:DOW)‘s stock had its “sell” rating restated by investment analysts at Deutsche Bank in a note issued to investors on Thursday. They currently have a $4.06 price objective on the stock. Deutsche Bank’s price objective points to a potential downside of 91.76% from the company’s current price." There must be a typo with the decimal point . $4.06 ? That can't be right. Maybe they are expecting WW III or the Apocalypse.
Soros Fund Management upped its position in Dow Chemical (DOW) in the fourth quarter. The position now accounts for 2.58% of the fund’s 4Q14 portfolio. The fund currently owns 5,183,739 shares, up from 2,918,714 shares in 3Q14.
This is a longterm investment stock. All the work EMR is doing to focus the business and globalize sales will take a couple of years . The oil patch has been the culprit as to why EMR's estimates are flat or lower for the year ahead( the oil patch makes up for 15% of sales) . The dividend is the only thing EMR has to offer, because it's so safe as a result of plenty of cashflow . If you are extremely patient , this is a good buy and hold. I own it for the dividend and conservative price movement with expectations the market will be increasingly volatile over the next couple of years.
Price Target Update on Shell Midstream Partners LP.
Mathew Donald · Feb 25th, 2015 · 0 Comment
Shell Midstream Partners LP (NYSE:SHLX) stock has received a short term price target of $ 44.67 from 3 Analyst. The share price can be expected to fluctuate from the mean short term target, can be seen from the standard deviation reading of $2.08. The higher estimate of target price is $47 , while the lower price target estimate is $43
The company has also received coverage from the Brokerage Firms. Barclays initiates coverage on Shell Midstream Partners LP (NYSE:SHLX). The rating major has initiated the coverage with an overweight rating on the shares. The Analysts at Barclays announces a current price target of $44 per share.
Zacks lowered shares of Emerson Electric (NYSE:EMR) from a neutral rating to an underperform rating in a report released on Monday. Zacks currently has $53.00 price objective on the stock. .
Zacks’ analyst wrote, “We are downgrading our long-term recommendation on Emerson to Underperform from Neutral, after the company’s sluggish first quarter fiscal 2015 results. Although quarterly earnings figure managed to surpass the Zacks Consensus Estimate, revenues fell behind. Weaknesses in Europe as well as other emerging markets along with negative impact of currency fluctuations continue to affect Emerson’s financials. Further, current volatility in the upstream oil and gas market is adding to the woes. Emerson anticipates such factors to persist in the remaining quarters of fiscal 2015. Especially, pressure due to decline in oil prices is expected to be felt primarily in second half of fiscal 2015. Given these factors, we expect the company’s bottom-line growth to remain restrained in the coming quarters. “
Emerson Electric Price Target Raised to $66.00 at Stifel Nicolaus (EMR)
February 20th, 2015 - 0 comments - Filed Under - by Thomas Dobrow
Emerson Electric Co. logoEmerson Electric (NYSE:EMR) had its price objective raised by Stifel Nicolaus from $64.00 to $66.00 in a research report released on Friday morning. Stifel Nicolaus currently has a buy rating on the stock.
which shows Blackrock owns over 5% of outstanding shares of EMR. BlackRock, Inc. is an American multinational investment management corporation based in New York City. Founded in 1988, initially as a risk management and fixed income institutional asset manager, BlackRock is the world's largest asset manager with over $4.59 trillion in assets under management.
Emerson Electric Co. (NYSE:EMR): 14 Analyst have given the stock of Emerson Electric Co. (NYSE:EMR) a near short term price target of $64.36. The standard deviation reading, which is a measure by which the stock price is expected to swing away from the mean estimate, is at $5.51. The higher price target estimate is at $79 while the lower price estimates are fixed at $56.
Alcoa Inc (NYSE:AA) stock has received a short term price target of $ 17.8 from 14 Analyst. The share price can be expected to fluctuate from the mean short term target, can be seen from the standard deviation reading of $2.46. The higher estimate of target price is $20 , while the lower price target estimate is $13
Peabody Energy Corporation (NYSE:BTU): 15 Analyst have given the stock of Peabody Energy Corporation (NYSE:BTU) a near short term price target of $11.08. The standard deviation reading, which is a measure by which the stock price is expected to swing away from the mean estimate, is at $4.31. The higher price target estimate is at $22 while the lower price estimates are fixed at $5.
exposure to oil is . My opinion is , and you can take this with a grain of salt as most people do at this board , judging from the likes and dislikes I get, that oil will not be as big a deal for EMR as some have predicted . Aside from drilling , production remains high in the oil patch . And I'm guessing that most of EMR's oil and NG business is midstream and downstream any way , in pipelines and refining , which are doing well currently. But a breakdown of the sales to up, mid and downstream oil and NG would go a long way in predicting how the selloff in the oil patch will affect EMR's results in the coming year.
Emerson Electric (NYSE:EMR) has earned an “A+” credit rating from Morningstar. The research firm’s “A+” rating indicates that the company is a low default risk. They also gave their stock a four star rating.
TROW , an excellent choice . Strong financials and track record . I'm a bottoms up value investor. I'm looking for a great company on sale , like EMR. EMR has strong financials and currently in a transition to a leaner and meaner company . Financials, EMR generates a lot of cash. Longterm Debt to Equity is about 50%( if you exclude the treasury stock on the books , it's 25%). The company's strong financials and it's particular industry limit's it's downside risk. The outlook is my next concern . Industrials have a flat outlook for 2015 , but I'm looking past 2015 (but I'm not opposed to a price increase in the short term if it happens). A rebound in the oil patch and Europe in the beginning of 2016 is what I'm assuming. Europe, the ECB is filling Euro banks with cash to the tune of $60 billion Euros per month currently , by buying bad bank assets (taking them off the bank books)to stimulate lending and the European economy. 20% of EMR's business is from Europe. The business model, I like a company that's changing it's model to become more profitable . And I like to post excerpts from the pro analysts on these message boards so people can see what the pros are thinking ( both for and against excerpts , because all analyst reports have a bias )and so they can get some factual data and some estimates and see what the pro bias is. Without information, how can a one make an informed decision? In the mean time I'll collect the 3 plus percent dividend .
Emerson Electric (NYSE:EMR) declared a quarterly dividend on Tuesday, February 3rd, American Banking & Market News reports. Shareholders of record on Friday, February 13th will be paid a dividend of 0.47 per share on Tuesday, March 10th. This represents a $1.88 dividend on an annualized basis and a yield of 3.29%. The ex-dividend date of this dividend is Wednesday, February 11th. "
Emerson Electric: A No-Brainer For Long-Term Investors
Feb. 8, 2015 9:55 PM ET | 10 comments | About: Emerson Electric Co. (EMR)
Disclosure: The author has no positions in any stocks mentioned, but may initiate a long position in EMR over the next 72 hours. (More...)
•Emerson Electric is one of the Dividend Champions, with an S&P Capital IQ rating of A+, healthy fundamentals, and attractive dividend yield at 3.29%.
•EMR aggressively buys back shares. In the recent Q1 earnings call, the CEO confirmed they will use the power transmission divestiture proceeds to buy back shares.
•EPS history trend looks healthy, upward, while cyclical, even without the share buybacks' denominator shrinking.
•Current market price drop offers an excellent opportunity for long-term DGI investors.
This article was sent to 6,323 people who get email alerts on EMR.
From Feb 3 , S&P rates EMR a Hold, and 12 month PT of $64. S&P quality rating of A+. Following note from report" Following a 0.5% decline in FY 14 (Sep.), we
look for revenues to decline about 1% in FY 15
and rise 2.4% in FY 16. Top line growth is likely
to be hurt by negative currency effects and
weakness related to oil and gas, offset by likely
improvements in domestic residential and commercial
construction. Reflecting recent shifts in
order trends, we look for revenue from EMR's
European units to remain relatively weak
through the first half of FY 15.
ä We anticipate a modest weakening of margins
during FY 15 on account of negative fixed cost
leverage. The impact of restructuring actions
will also become more visible as volumes increase,
in our view.We think raw material
costs will have limited impact on margins in the
coming year, while the drag from higher pension
and stock compensation expenses should
ä EMR bought back $1.0 billion in common stock
in FY 14, and the diluted share count declined
by 2.6%. Our EPS estimate for FY 15 is $3.88,
growing to $4.11 in FY 16." Well, 2 out of 3 ain't bad (when it comes to analyst reports)
From Nov 2014 ,Argus gives EMR a 12 month rating of Buy and 5 year rating of Buy. here's the following Research notes. "Analyst's Notes
Analysis by John Eade and Michael Supron, November 10, 2014
ARGUS RATING: BUY
• Recent weakness offers buying opportunity
• EMR shares have underperformed the market over the past quarter, rising 3% while the S&P 500 has
• The company topped expectations in fiscal 4Q14, and management boosted the dividend by 9%.
• We are trimming our FY15 EPS estimate to $4.00 from $4.21, as we now expect another year of
6%-7% EPS growth, followed by stronger gains in FY16.
• Our blended valuation analysis points to a fair value for EMR of $75 per share.
Our rating on Emerson Electric Co. (NYSE: EMR) is BUY and our target price is $75.
This leading blue-chip industrial company appears poised to deliver high single-digit EPS
growth, driven by margin improvement, share buybacks and modest top-line growth.
Management is clearly focused on generating shareholder value and has been buying back
stock and increasing the dividend. Emerson should also benefit from improving global
economic conditions, as well as from its growing order backlog. EMR is not cheap, but we
think the shares of this well-managed company deserve to trade at a modest premium to
those of other industrial companies.