Emerson price paid for NATI ‘net negative,’ says JPMorgan

JPMorgan analyst Stephen Tusa says Emerson Electric’s (EMR) "extended" $60 per share bid for National Instruments (NATI) is a "net negative" but does not change the stock’s attractive risk/reward based on valuation. The analyst likes the National Instruments asset and sees "material improvement opportunities," but says the purchase price is a "mathematical negative." Emerson shares are retesting lows, down 13% year-to-date, and are "cheap," the analyst tells investors in a research note. However, the firm struggles to find catalysts for a re-rating "after this type of stretch of capital deployment." It keeps a Neutral rating on Emerson Electric.