Deutsche Bank thinks Emerson Electric (EMR) traded down on news of the National Instruments (NATI) acquisition because management explicitly said it would not pay up to $60 per share for the asset. As such, the purchase price was higher than "bulls" had anticipated, the analyst tells investors in a research note. Given Emerson’s previous comments, the analyst is surprised the company opted to pay $60 per share for National Instruments. The firm says this sentiment has been echoed in its conversations with investors today. Management’s decision to go against its word to the investment community does not bode well for its credibility, writes Deutsche. It calculates 42c of earnings per share accretion in year one, ramping to nearly 60c by year five. The firm keeps a Hold rating on Emerson Electric with a $93 price target.
Published first on TheFly
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- Emerson Electric backs Q2 adjusted EPS view 95c-$1.00, consensus 98c
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