- Emerson delivered a good beat-and-raise to start off its fiscal year, with several longer-cycle markets already showing improving demand levels.
- Long-term demand in the oil/gas market remains a concern for me, but Emerson has upgraded its offerings in a range of other process and hybrid markets, including life sciences.
- A new CEO is unlikely to lead to dramatic change; the new CEO is an Emerson veteran, and while there are opportunities to improve, it's likely to be more evolutionary.
- Emerson looks priced for mid-single-digit long-term annualized returns on long-term mid-single-digit FCF growth, making it priced more or less on par with many high-quality industrials.
For further details see:
Emerson Benefiting From A Quicker Recovery In Longer-Cycle Markets