Emerson Electric is on the verge of a turnaround, according to JPMorgan. The firm upgraded shares of Emerson to overweight from neutral in a Tuesday note and raised its price target to $107 from $83. JPMorgan’s new forecast implies roughly 13% upside from Monday’s $95.06 close. The multinational is headquartered in Missouri and provides engineering services. Analyst Stephen Tusa said that, although Emerson is in the middle of “dilutive portfolio moves” including merging its industrial software business with AspenTech in 2022 , the long-term investments will bring growth to the stock. “After a decade long rolling reset, visibility around positive earnings revisions is now as good as its been since the 2003-2008 super cycle,” Tusa said in a note. “We see an attractive GARP set up as the dust settles on what should be close to a final round of mostly dilutive portfolio moves, but where we think the underlying quality of core value driving franchises is underappreciated,” Tusa said. He also said fiscal 2024 estimates look conservative for Emerson, which provides engineering services for large-scale markets and consumers. Emerson Electric has ticked down 1% in 2023. However, the stock has rallied more than 16% over the past three months. EMR YTD mountain Emerson Electric stock. — CNBC’s Michael Bloom contributed to this report.
