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Emerson Electric (NYSE:EMR) on Monday was rated Equal Weight in reinstated coverage by analysts at financial-services firm Barclays. They said the industrial technology and engineering company’s sales growth is likely to slow next year.
“We estimate organic orders will decline slightly over the next 12 months after mid-single-digit to high-single-digit growth recently and that organic sales growth will slow to a mid-single-digit rate in fiscal year 2024 after approximately 10% in 2023,” Julian Mitchell, analyst at Barclays, said in an August 28 report.
Emerson’s (EMR) stock is trading at premium based on its dividend and free cash flow yields, the report said.
“Emerson (EMR) has rarely been more popular with the investment community (about 70% Buy rating today versus about 40% average historically) than it is now, underscoring that expectations are quite high,” according to Barclays.
The analysts set a price target of $105 a share on Emerson (EMR) based on a combination of methodologies such as discounted cash flow and enterprise value-to-Ebitda.
