By: Scott Davis

EMR remains one of our 4 high-conviction Buy-Accumulate rated names. With cyclical upside from a recovering industrial macro, it’s surprising to us that the stock continues to trade well below cyclical peers like ROK, ITW and FTV. EMR is also a prime beneficiary from tax reform, both as a high tax payer and given its leverage to a potential capex cycle (2/3 of EMR is now automation). A blue sky scenario shows EMR’s cash EPS around $6.00 in 2020 and a stock well north of $100 in 2 years (40% upside).
Here are 5 key drivers of our bullish view…

EMR Report Here