Bernstein Initiates Coverage Of Several Industrial Stocks – Emerson Electric Company (EMR), General Electric Company (GE), Idex Corp. (IEX), 3M Company (MMM), Rockwell Automation Inc (ROK), Roper Industries (ROP)



Bernstein analyst Brendan Luecke initiates coverage of several industrial stocks. 

  • The analyst started the U.S. multi-industry and electrical equipment sector “at a time of great uncertainty.” He sees supply chain disruptions threatening revenue forecasts and inflation pressuring margins but believes “all of this is transitory.”
  • The analyst initiated Emerson Electric Co (NYSE:EMR) with a Market Perform rating and a price target of $100, implying an upside of 3.6%.
  • Luecke says Emerson Electric is “a great firm that got stuck in oily end markets” as 25% of today’s revenues are from oil & gas, and this could become an “enduring top-line problem” if decarbonization comes quickly.
  • Investors expecting rapid, near-term decarbonization should consider selling into strength as Emerson benefits from a recovery in its long-cycle automation end markets, added the analyst.
  • The analyst initiated Rockwell Automation Inc (NYSE:ROK) with an Outperform rating and a price target of $378, implying an upside of 13%.
  • Luecke says “historically strong” fiscal 2021 backlog numbers, in conjunction with a “sound” growth strategy, give confidence that Rockwell will deliver “sustainably higher growth numbers after the current upcycle.” 
  • The analyst initiated Roper Technologies Inc (NYSE:ROP) with a Market Perform rating and a price target of $505, implying an upside of 9.5%.
  • The analyst believes Roper offers an outstanding sustainable compounding story. However, he sees risk around acquisition multiples.
  • The analyst initiated IDEX Corp (NYSE:IEX) with a Market Perform rating and a price target of $230, implying an upside of 1.9%.
  • The analyst believes it offers an outstanding sustainable compounding story but sees risk around the deal volume.
  • The analyst initiated 3M Co (NYSE:MMM) with a Market Perform rating and a price target of $175, implying a downside of 2.5%.
  • The analyst initiated General Electric Co (NYSE:GE) with an Outperform rating and a price target of $120, implying an upside of 17.3%.
  • Price Action: EMR shares are trading higher by 1.27% at $96.51, ROK by 1.34% at $334.58, ROP by 1.68% at $461.23, IEX by 0.50% at $225.97, MMM by 1.14% at $179.41 and GE by 2.86% at $102.25 on the last check Tuesday.



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