Update shared on04 Sep 2025
Fair value Increased 0.77%Despite stable process markets, solid demand, and improved margin outlook following Emerson's portfolio shift, consensus analyst price targets remain unchanged at $149.69, reflecting more realistic market expectations and increased conviction in the company's long-term growth.
Analyst Commentary
- Market expectations for Emerson's process and industrial capex outlook have become more realistic, supported by stable process markets expected into 2026.
- Demand has remained stronger than anticipated and price realization is largely tracking expectations amidst continued tariff uncertainty.
- Bullish analysts expect robust sector results and slight increases to 2025 earnings outlooks, driving higher price targets.
- Conviction in Emerson's structurally stronger margins and resilient secular growth opportunities has grown post its portfolio transformation into a pure-play Industrial Automation conglomerate.
- Emerson is increasingly perceived as an underappreciated value story with improved long-term growth visibility.
What's in the News
- Stephens raised Emerson's price target to $145 from $130, maintaining an Equal Weight rating, citing steady price realization and stronger-than-expected demand despite tariff uncertainty (Stephens, Periodicals).
- Emerson provided Q4 2025 guidance of 5.5%-6.5% net sales growth and EPS of $1.13-$1.17; FY2025 guidance is for 3.5% sales growth and ~$4.08 EPS (Key Developments).
- Emerson continues shareholder returns, completing the repurchase of 40.2 million shares (6.88% of shares outstanding) for $4.06 billion under its ongoing buyback program (Key Developments).
- The company is advancing AI integration, launching the Nigel AI Advisor for test software (NI LabVIEW/TestStand) and the Ovation AI-enabled Virtual Advisor for power and water automation, enhancing productivity, automation, and decision-making (Key Developments).
- Emerson announced major strategic partnerships and initiatives, including supporting a Quebec energy transition innovation center, collaborating with TotalEnergies to deploy AI-data solutions globally, and partnering with Tata Technologies to accelerate automotive and mobility testing; meanwhile, Emerson was recently dropped from the Russell 1000 Defensive and Value-Defensive Indices (Key Developments).
Valuation Changes
Summary of Valuation Changes for Emerson Electric
- The Consensus Analyst Price Target remained effectively unchanged, at $149.69.
- The Net Profit Margin for Emerson Electric remained effectively unchanged, at 15.43%.
- The Consensus Revenue Growth forecasts for Emerson Electric remained effectively unchanged, at 6.2% per annum.
Disclaimer
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