DA Davidson increased its price target for Emerson Electric Co. to $155 from $145, citing stronger demand for energy infrastructure and automation amid a broader industrial cycle.
The upgrade reflects Emerson’s positioning in power generation, liquefied natural gas projects and nearshoring trends, according to the firm. DA Davidson maintained its Neutral rating on the stock.
The new target implies a multiple of 18.9 times Emerson’s projected fiscal 2028 earnings per share of $8.20, below the five-year median of 19.4 times. Emerson’s current price-to-earnings ratio stands at 34.33.
Emerson reported adjusted earnings of $1.71 per share and revenue of $4.87 billion in its fiscal third quarter, exceeding Wall Street expectations. The company’s Piotroski Score is 9, and its gross profit margin is 53%, according to InvestingPro.
DA Davidson highlighted structural tailwinds including rising power demand, LNG investments and reshoring trends, alongside strength in automation and data center-related industrial activity. The firm also noted risks such as project delays, trade barriers and geopolitical tensions.
Citi data cited in the report showed industrial sector organic growth of 6.9% in the second quarter of 2026, exceeding Citi’s 4.0% forecast.
Emerson’s stock last traded near $157.36, up from the prior target of $145 but below the current market price.
