Bank of America is sticking by Emerson Electric after a postearnings sell-off, as the company could benefit from manufacturing shifting back to the U.S. Emerson Electric’s fiscal third-quarter results were mixed, hurt by weaker-than-expected sales. The company, which makes autonomous technology and industrial goods, lowered its full-year outlook and now estimates sales will rise 3.5% from the prior fiscal year, rather than its earlier forecast of 4% growth. Shares slipped about 8% on the heels of the report on Wednesday and were down another 2% in trading on Thursday. The pullback could be “an opportunity to buy pure-play automation at a discount,” analyst Andrew Obin said, adding that the sour sentiment is likely overblown. “We think the stock reaction reflects a ‘less upside’ narrative versus concern that underlying demand is weaker,” he said. “3QF25 (June-end) orders grew +4% y/y, which was steady with last quarter’s pace despite a 400bp tougher compare. However, it was only in line with prior mid-single digit guidance.” EMR YTD mountain Emerson Electric stock in 2025. Shares have gained about 6% so far in 2025. Bank of America sees the stock rising to $165 per share, or about 23% above Wednesday’s $133.95 close. The firm reiterated its buy rating. Obin said he expects Emerson will be a downstream beneficiary of U.S. reshoring efforts, which has been a key focus for President Donald Trump’s second term. “We see Emerson as a beneficiary of US reshoring, with strong share in Life Sciences/Pharma,” Obin said. “An aggregate of $216bn of reshoring announcements have been made so far this year.”
