div style=”text-align: justify;”Merrill Lynch/BAC is upgrading span style=”font-weight: bold;”Emerson (NYSE:EMR)/span to Buy from Neutral while establishing a whopping $50 tgt on the name (vs. prev. $32 tgt)br /br /span style=”font-weight: bold;”Lagging share price creates opportunity/spanbr /EMR has significantly lagged its industrial peers during this recent rally – Merrill thinks driven by concerns that trough earnings for Emerson occur much later than other perceived shorter cycle plays. However, they think earnings for most industrials are likely to trend lower in 2010, which they think puts EMR on more of a comparable footing to close the performance gap with other industrials.br /br /span style=”font-weight: bold;”Emerson business outlook appears to be turning higher/spanbr /Firm thinks the outlook for Emerson’s business, on average, has also begun to turn up. For instance, Emerson has the largest direct exposure to China at ~9% of revenues. Roughly 75% of the company’s products are estimated to be tied to infrastructure spending which should benefit from global stimulus efforts. In addition, roughly one quarter of Emerson’s product mix sells into economically sensitive end markets – mostly in North America – that should benefit in a U.S. recovery.br /br /span style=”font-weight: bold;”Future order rate improvement could boost sentiment/spanbr /Emerson’s orders also appear to be hitting trough levels at down over 20%. Consequently, once the rate of order decline begins to ease – possibly later this year – they think the stock could also respond favorably.br /br /span style=”color: rgb(255, 0, 0);”Notablecalls:/span That $50 tgt will surely catch traders attention and cause the stock to move above the $35 level.br /br /span style=”font-weight: bold;”PS:/span I know I should be making fun of the span style=”font-weight: bold;”Research in Motion (NASDAQ:RIMM)/span upgrade out of UBS this morning. I won’t, though – the fact they upgraded it here is retarded enough.br /br /span style=”font-style: italic;”"I’ll bet you wished you had fed the rest of me to the dogs.”/spanbr /span style=”font-style: italic;”Gary Oldman as Mason Verger/spanbr /br /span style=”font-style: italic;”"No, no Mason I prefer you the way you are.”/spanbr /span style=”font-style: italic;”Sir Anthony Hopkins as Hannibal/spanbr //divdiv class=”blogger-post-footer”img width=’1′ height=’1′ src=’http://res1.blogblog.com/tracker/29297569-2427963921894355403?l=notablecalls.blogspot.com’//div

Last 5 posts by Notable Calls

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