Analysts Bump Up Rockwell Automation Price Target After Q4 Results
- Oppenheimer analyst Noah Kaye raised the price target on Rockwell Automation (NYSE:ROK) to $360 (an upside of 7%) from $310 and maintained an Outperform rating on the shares following quarterly results.
- Kaye notes that the company guided the full year 2022 sales/adjusted EPS midpoints 5.5%/5.3% above the Street, anticipating its highest level of year-over-year organic growth since 2011.
- The analyst adds with demand for automation robust amid industrial bottlenecks, the supply of critical components should largely dictate the full year 2022 sales cadence/variance with guidance.
- Wells Fargo analyst Joseph O'Dea raised the price target to $284 (a downside of 15%) from $256 and maintained an Underweight rating on the shares.
- The analyst notes that 14%-17% organic growth in 2022 is way above what he expected for the initial guide. While O'Dea believes it's tough to argue for upside to the top-line outlook, the "implied incrementals" look like they're at the low end of the 30%-35% range.
- That may prove conservative, especially given volume strength, the analyst points out, adding that the 17% tax rate guide may also leave upside to earnings.
- Credit Suisse analyst John Walsh raised the price target to $332 (a downside of 1%) from $305 following quarterly results and kept a Neutral rating on the shares.
- Morgan Stanley raised the price target to $387 (an upside of 15%) from $327 and maintained an Overweight rating on the shares.
- Price Action: ROK shares are trading lower by 2.56% at $334.62 on the last check Wednesday.
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