Emerson Electric downgraded to Equal Weight from Overweight at Stephens

Stephens analyst Tommy Moll downgraded Emerson Electric (EMR) to Equal Weight from Overweight with a price target of $120, down from $135. Since last quarter, Emerson has closed the divestitures of the Copeland equity interest and note receivable, which combined represent $2.9B in after-tax cash proceeds, the analyst tells investors in a research note. The firm believes this increases the likelihood Emerson acquires the remaining 43% of Aspen Technology (AZPN) shares, which have risen nearly 40% the past two months toward their all-time high. In the near-term, Stephens sees a potential transaction as dilutive to adjusted earrings per share in the range of 15c. Until investors have better appreciation for the pro forma earnings and shareholder return profiles, Emerson shares appear unlikely to migrate above their historic valuation range, contends the firm.