- Emerson offers leverage to accelerate mid-to-late-cycle end-markets, but also growing exposure to secular opportunities like hybrid automation and industrial software/digitalization.
- I like the structure of the tie-up with Aspen, as it leaves the company with a high-multiple asset to leverage in future software M&A.
- Management is already in the process of transitioning away from a heavy reliance on fossil fuel-driven process automation projects, but there are a lot of details left to fill in.
- I expect a greater commitment to hybrid automation, including areas like controls, sensors, machine vision, and precision control.
- Emerson shares look undervalued on the basis of long-term mid-single-digit growth and potentially transformative M&A.
For further details see:
Emerson Looks Right - Right Place, Right Assets, Right Time, Right Valuation