Emerson faces competitive pressures, potential product failures, supply chain disruptions (raw materials, global facilities), regulatory changes (tax, environmental), economic downturns, and cybersecurity threats. Acquisitions and divestitures carry integration and separation risks, and the proposed AspenTech acquisition and Safety & Productivity review are uncertain. Currency fluctuations and legal proceedings also pose risks.
Financial Upside
Emerson anticipates sales growth (15% in 2024) driven by acquisitions (National Instruments) and a strong international presence. Portfolio transformation through acquisitions and divestitures aims for higher growth and margins. The proposed AspenTech acquisition and potential Safety & Productivity sale could create significant value. Strong operating cash flow and shareholder returns are also projected.
