Stock Price & Analysis

Based on the recent data and market analysis, EMR stock shows mixed signals:

Technical Analysis:

The stock is currently in a short-term downtrend, with the price declining from recent highs around $134. The RSI-14 at 43.24 indicates neutral momentum, while the MACD shows a bearish crossover with a negative divergence of -0.21.

Fundamental Strength:

• Strong Q1 2025 performance with adjusted EPS of $1.38, beating consensus of $1.28
• Operating cash flow increased 75% to $777 million
• Healthy margin expansion with adjusted segment EBITDA margin improving to 28.0% from 24.6%

Recent Developments:

• Announced acquisition of remaining AspenTech stake for $7.2 billion, strengthening its industrial automation portfolio
• Declared quarterly dividend of $0.5275 payable March 10, 2025

Market Sentiment:

Among 23 analysts covering EMR:

• 16 Strong Buy
• 1 Moderate Buy
• 5 Hold
• 1 Moderate Sell The mean price target is $139.96, suggesting a 9.6% upside potential.

Recommendation: SELL

• Current technical indicators suggest bearish momentum in the short term
• The stock is trading near resistance levels
• Recent insider selling activity raises some concerns
• Consider waiting for a pullback to support levels around $120-122 before establishing new positions

Based on the provided data and recent market developments, here's a comprehensive price prediction analysis for EMR stock in 2025:

Current Market Position

Technical Analysis

• Current price is trading around $123.93, showing a bearish trend in the short term
• RSI-14 at 43.24 indicates neutral momentum but leaning towards oversold territory
• MACD shows bearish divergence with -0.21 and histogram at -0.53
• Stock is trading below its 20-day SMA of $127.64, suggesting short-term weakness

Fundamental Drivers

• Recent Q1 FY25 results:
  • Adjusted EPS of $1.38 beat consensus of $1.28
  • Revenue slightly missed expectations at $4.175 billion
  • Company lowered FY25 net sales growth outlook to 1.5-3.5% from previous 3.5-5.5%

Growth Catalysts

• Acquisition of remaining 43% stake in AspenTech for $7.2 billion
• Expected synergies of $110 million
• Strong process and hybrid markets performance offsetting weak discrete automation

Price Target Scenarios for 2025

1. Bullish Case ($147):

• Supported by Daiwa's recent price target
• Driven by successful AspenTech integration and market share gains
• Probability: 35%

2. Base Case ($140):

• Aligned with mean analyst price target
• Supported by current growth trajectory and market position
• Probability: 45%

3. Bearish Case ($130):

• Based on TD Cowen's conservative target
• Considers reduced sales growth outlook and macro headwinds
• Probability: 20%

Most Likely Scenario: Base case of $140 by end of 2025, representing about 13% upside from current levels. This is supported by:

• Management's maintained EPS guidance of $5.85-6.05 for FY25
• Strong cash flow generation with FCF of $3.2-3.3 billion expected
• Planned $3.2 billion shareholder returns through buybacks and dividends

The S1 support level for EMR Stock is $123.08 ,The R1 resistant level for EMR Stock is $128.87.

As of the end of day on 2025-02-18, the price of EMR Stock was $125.

The target price for EMR Stock according to analyst rating is 142.33, with the highest price target at 160.00 and the lowest at 112.00. Analysts have a Moderate Buy rating on EMR Stock overall.

The market cap of EMR is $70.5B.

Based on the provided data and recent market analysis, here's a comprehensive evaluation of EMR's valuation:

Valuation Analysis: EMR is currently showing mixed valuation signals based on multiple metrics. The P/E ratio has increased significantly from 13.51 in FY2022 to 25.96 in FY2023, suggesting the stock has become more expensive relative to earnings. Similarly, the EV/EBITDA ratio rose from 12.23 to 15.40, indicating higher enterprise value relative to operating performance.

Financial Performance: The company's Q1 FY2025 results showed strong execution with adjusted EPS of $1.38, beating analyst expectations by 7.8%. However, revenue slightly missed estimates at $4.175 billion versus the expected $4.221 billion. The company maintains a healthy gross margin of 45.8%, up from 39.9% in the previous year.

Technical Analysis: Current technical indicators suggest a cautious outlook:

• RSI-14 at 43.24 indicates neutral momentum
• Stock is trading below its 5-day (125.36) and 10-day (125.89) moving averages
• MACD shows bearish momentum with -0.21 reading

Market Sentiment: Wall Street maintains a "Moderate Buy" consensus with a mean price target of $139.96, representing a 9.6% upside potential from current levels. Recent analyst coverage includes:

• TD Cowen initiated coverage with a Buy rating and $130 price target
• Daiwa set a $147 price target with an "Outperform" rating

Conclusion: EMR appears moderately overvalued based on traditional metrics, but this premium is partially justified by:

1. Strong earnings performance exceeding expectations
2. Improved operational efficiency with expanding margins
3. Strategic portfolio transformation enhancing growth potential
4. Robust analyst confidence in future prospects
5. Significant free cash flow improvements

Emerson Electric Co. is a global technology and software company. The Company is a global manufacturer that combines technology and engineering to provide advanced solutions to its customers. The Company operates through six segments under two business groups, such as Intelligent Devices, and Software and Control. Its Intelligent Devices business includes Final Control, Measurement & Analytical, Discrete Automation, and Safety & Productivity. The Software and Control business include Control Systems & Software, AspenTech, and Test & Measurement. Final Control segment includes valves, and actuators & regulators product offerings. Measurement & Analytical segment includes liquid analysis, gas analysis, tank gauging system and others. Discrete Automation segment includes industrial solutions product offerings. Safety & Productivity segment includes tools and home products. AspenTech segment provides asset optimization software that enables industrial manufacturers to maintain operations.

Based on the available data and market analysis, here is the 2030 price prediction for EMR stock:

Emerson Electric (EMR) stock is projected to reach $185-195 by 2030. This forecast is supported by the company's strong automation and software growth strategy, particularly following its strategic 43% acquisition of Aspen Technology which positions EMR as an industrial automation leader. The company's consistent earnings beats and analysts' positive outlook suggest sustained growth momentum.

The stock's technical strength, demonstrated by outperforming both the S&P 500 and automation sector peers with a 35.9% gain over the past year, combined with its robust fundamentals and expansion into high-growth markets, indicates strong upward potential through 2030.

EMR has a total of 67000 employees.