Emerson stock rating maintained as TD Cowen analyst assumes coverage

Investing.com - TD Cowen maintained its Buy rating on Emerson (NYSE:EMR) as analyst Joe Giordano assumed coverage of the industrial automation company, setting a price target of $150.00. The stock, currently trading near its 52-week high of $139.90, has delivered impressive returns with a 30% gain over the past year.

The price target represents approximately 23 times the company’s projected fiscal year 2026 earnings per share, according to the research note released Monday. The company currently trades at a P/E ratio of 40.18, and InvestingPro analysis suggests the stock is trading above its Fair Value.

TD Cowen cited continued strength in Emerson’s Process business segment as a key factor supporting its bullish outlook on the stock.

The firm also noted the potential for recovery in discrete automation markets, though it indicated this recovery is "not overly evident" at present.

TD Cowen highlighted Emerson’s consistent improvement in margin profile through mergers and acquisitions, while adding that the company’s current valuation appears reasonable compared to peers such as Rockwell Automation (NYSE:ROK).

In other recent news, Emerson Electric Company reported its second-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $1.48 and revenue of $4.43 billion, both exceeding forecasts. The company also raised its full-year EPS guidance to $5.90-$6.05. Additionally, Emerson’s strategic acquisition of AspenTech is projected to yield $100 million in cost synergies by 2028. KeyBanc upgraded its price target for Emerson to $155, citing strong growth potential and favorable market conditions, while Loop Capital maintained a Buy rating with the same price target, highlighting reduced tariff-related headwinds.

Furthermore, Citi increased its price target for Emerson to $133, maintaining a Buy rating, and emphasized the company’s high gross margins and potential cost synergies. Emerson’s management remains optimistic about its long-term growth, with expectations of continued demand in Process and Hybrid markets. The company’s strategic portfolio shifts and focus on software-centric business models are seen as key drivers for future growth. These developments reflect a positive outlook for Emerson’s financial performance and strategic direction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.