Emerson Electric Co. (EMR) Leverages Automation Exposure to Support Long-Term Growth Outlook

By Laiba Immad | December 30, 2025, 12:25 PM

We recently compiled a list of the 7 Most Promising Robotics Stocks According to Wall Street Analysts. Emerson Electric Co. stands seventh on our list among the most promising stocks.

TheFly reported on December 15 that Evercore ISI initiated coverage on EMR with an Outperform rating and a $170 price target. Analyst Alexander Virgo cited the company’s higher-quality portfolio following its recent strategic transformation.

Evercore noted that EMR’s increasing exposure to automation and software solutions positions the company for stronger growth cycles and supports above-average free cash flow generation over time. The firm also highlighted Emerson Electric Co. (NYSE:EMR)’s significant 600–700 basis point expansion in gross and EBITA margins, attributing the improvement to enhanced pricing power, productivity gains, and a richer software mix. According to Evercore ISI, these factors should help provide greater earnings resilience across economic cycles.

Emerson Electric Co. (EMR) Leverages Automation Exposure to Support Long-Term Growth Outlook

In contrast, on December 10, 2025, Jefferies downgraded EMR from Buy to Hold and maintained its $145 price target. Analyst Saree Boroditsky cited a more balanced risk-reward profile following the company’s multi-year portfolio transformation, including the completion of the AspenTech acquisition and the recent introduction of longer-term financial targets.

Emerson Electric Co. (NYSE:EMR) is a global industrial technology and software company headquartered in St. Louis, Missouri, with a long history of providing automation, control systems, and smart devices to a wide range of industries. While EMR does not manufacture industrial robots directly, it plays a critical enabling role in robotics and advanced automation.

While we acknowledge the potential of EMR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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