Jefferies raises Emerson Electric's rating and target price

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Jefferies said Emerson Electric is poised to rise, as its transition to industrial automation has driven order volume across its businesses.

The investment firm upgraded its rating on the engineering services stock from “Hold” to “Buy.” At the same time, it raised the stock’s price target from $160 to $175, implying roughly 42% upside from Monday’s close.

“Strong order momentum in key growth verticals should support accelerating earnings growth from (the first half of this year) low single digits to the end of fiscal 2026 and the low teens in fiscal 2027,” analyst Stephen Volkmann said in a report to clients. “In addition, over the past decade, Emerson has achieved an 800-basis-point improvement in profit margin through operational and portfolio initiatives, and we believe this will support a higher valuation multiple.”

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