20250609花旗集团美国多元化工业企业集团以及工程与建筑夏季仍青睐关注大趋势的公司251mb.docxVIP

O9Jun2O25O6:24:2OET│25pages

USDiversifiedIndustrialsConglomeratesandEngineeringConstruction

MegatrendFocusedNamesStillFavoredIntotheSummer

AndrewKaplowitzAC

+1-212-816-0642

CITISTAKEEconomicindicators

CITISTAKE

EconomicindicatorssuchasPMIremain,wethink,reflectiveofstillmixedoverallindustrialtrends(U.S.MayPMIat48.5vs.48.7inApril)andN-Tuncertaintyappearslikelytoremainrelativelyelevatedgivenongoingtradeandtariff-relatedperturbationsaswellassomelegislativeunknownsasTheOneBigBeautifulBillAct(OBBBA)navigatesthelegislativeprocess;inthecurrentenvironment,wepreferexposuretoseculartailwindsthataremostlikelytoremainintact-industrialautomation(EMR–nowourMultisTopPick;ROK)andelectrification/infrastructure(TopPickPWR;MTZ).WerealsohighlightingMIR,whosenuclearexposurecouldcontinuetogarnerincreasinginterestandATKR,whocouldbenefitfromelevatedsteeltariffsandonwhomweinitiateapositiveshort-termview.

VladimirBystricky

vladimir.bystricky@

PiyushAvasthy

piyush.avasthy@

NataliaBak

natalia.j.bak@

JoseSulcaFlores

jose.alonso.sulcaflores@

Action

ActionI

DurableTailwindsForIndustrialAutomationBenefitEMRandROK—OurrecentlypublishedannualAutomationSurveyhighlightsdurabletailwindsforindustrialautomation,whichwethinkcouldsupportgoodgrowthwithstrongoperatingleverageforEMRandROK.WeraiseEMRtoourMultisTopPick(aboveROKinour“peckingorder”)givenwhatweviewasunderappreciatedearningsmomentum,strongoperatingleverage,andanunusuallywidevaluationdiscountvs.ROKthatshouldnarrowovertimeasEMRsearningsdurabilityisincreasinglyrecognized.ForROK,wethinkimprovingdemand+strongoperatingleverageareincreasinglyanticipatedbutshouldstillsupportsharepricegainsasgrowthandearningsinflectpositivelyinthecomingquarters.

InfrastructureASustainableGrowthDriver