Emerson Electric (EMR) - Get Report said on Tuesday that it was embarking on a review of its "operational, capital allocation and portfolio initiatives" - confirmation that the company is exploring a potential breakup and sale as a way to boost shareholder value.

In a statement, CEO David Farr said the St. Louis-based industrial conglomerate confirmed that its board and management team will be undertaking a "thorough review" of the company's cost structure, capital allocation and portfolio that will "inform decisions that drive strong value creation for our shareholders in what we expect to be an uncertain environment."

Shares of Emerson gained on Monday on reports the company was exploring a breakup as well as a boost from analysts at RBC, who lifted their rating on the company's shares to buy from hold on expectations that the parts of Emerson are worth more than the whole.

"While we remain positive on Emerson's end markets, we anticipate a challenging geopolitical and economic landscape over the next couple of years. We are focused on ensuring we are well-positioned to successfully drive outperformance and shareholder value," said Farr.

The company didn't provide specifics on how it plans to approach maximizing shareholder value, though both RBC and other reports have detailed a possible breakup scenario involving EMR's automation solutions unit and its commercial and residential solutions business. 

Shares of Emerson were up 1.35% at $67.76 in Tuesday morning trading. 

Save 57% During Our Fall Sale. Join Jim Cramer's Action Alerts PLUS investment club to become a smarter investor. Click here to sign up and save!