Nomura Securities on U.S. Industrials

Nomura Securities on U.S. Industrials by Shannon O’Callaghan

O'Callaghan said, "A downside scenario analysis on the industrials sector. So far, outside of Emerson (NYSE: EMR), we haven’t had any of our companies wave a big red flag signaling clear weakness, so in that respect the micro has not yet caught up to the macro negativity (eg, 1H US GDP growth, consumer sentiment, market sell-off). However, we have seen some signs of softness. Danaher (NYSE: DHR) is our preferred defensive exposure in the sector while we see 3M (NYSE: MMM) as particularly vulnerable to economic softness given its short-cycle business and reliance on accelerating organic growth in its earnings model."

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