Emerson Shares Hold Steady Despite Wells Fargo Downgrade
Emerson (NYSE:EMR) shares remain steady despite a downgrade from Wells Fargo. The bank believes the company's business is undervalued but lacks immediate catalysts for growth.
Emerson's management recently shared that fourth-quarter orders are likely to grow within the 5%-7% range, but this growth is being hindered by demand issues in China and Europe. Despite this, the Americas are performing better than expected in most markets, excluding sustainability projects.
Wells Fargo has adjusted its stance on Emerson's shares, moving from 'Overweight' to 'Equal Weight'. The bank has also lowered its price target for the shares, from $150 to $140. This follows a similar move by Barclays, which downgraded Emerson from 'Underweight' to 'Equal Weight' on August 7, 2025.
Emerson is transforming its portfolio to focus more on automation, which promises rich margins and strong cash generation. While the company's shares have not reacted significantly to the downgrade, investors should monitor its progress in overcoming demand headwinds in key markets.
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