EMR - Emerson upped at Oppenheimer on strong capital preservation

Emerson (EMR +1.5%) edges higher as Oppenheimer upgrades shares to Outperform from Market Perform with a $110 price target, citing "excellent persistent capital preservation characteristics in shares," including a 10-year average 119% free cash flow to net income ratio, as well as an estimated 5.6% FY 2022 free cash flow yield. Oppenheimer's Glynn Schuchard likes the company's "strong global leadership position in Automation Solutions into strong prospects for a dynamic multi-faceted backdrop of cyclical and secular drivers." Schuchard says Emerson's Automation Solutions' long-term runway draws on an enhanced breadth of digital offerings, and its  process technologies portfolio - systems architecture, measurement/analytics, calibration, flow - "paves [the] way for core portfolio leverage." "At just under 19x estimated FY 2022 with strong alignment to strategic global investment trends, we anticipate increasingly favorable risk/reward profile," Schuchard writes. Emerson "offers leverage to accelerate mid-to-late-cycle end-markets, but also growing exposure to secular opportunities like hybrid

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Emerson upped at Oppenheimer on strong capital preservation