January 11, 2012 at 09:13 AM EST
Emerson Electric Downgraded to “Neutral” at Goldman; No Catalysts Seen (EMR)

Diversified technology provider Emerson Electric Co. (EMR) on Wednesday caught a big downgrade from analysts at Goldman Sachs.

The firm said it lowered its rating on EMR from “Buy” to “Neutral” with a $54 price target, suggesting an 11% upside to the stock’s Tuesday closing price of $48.70.

A Goldman analyst commented, “EMR shares may struggle to outperform until a resumption of estimate revision momentum re-emerges, which could take several quarters.” Still, the firm lauded the company’s above-average dividend yield, solid free cash flow, and relatively weak 2011 performance as potential positives.

Emerson Electric shares fell 70 cents, or -1.7%, in premarket trading Wednesday.

The Bottom Line
Shares of Emerson Electric (EMR) have a 3.29% dividend yield, based on last night’s closing stock price of $48.70. The stock has technical support in the $42-$45 price area. If the shares can firm up, we see overhead resistance around the $50-$52 price levels.

Emerson Electric Co. (EMR) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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