Morgan Stanley Upgrades Rockwell Automation (ROK) to Equalweight

January 9, 2017 3:11 AM EST
Get Alerts ROK Hot Sheet
Price: $139.96 +0.23%

Rating Summary:
    5 Buy, 22 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 5 | Down: 5 | New: 0
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Morgan Stanley upgraded Rockwell Automation (NYSE: ROK) from Underweight to Equalweight with a price target of $145.00 (from $136.00).

Analyst Nigel Coe comments "We turn more bullish on ROK as we see upside to estimates from US IP acceleration. While the valuation premium acts as a brake on our enthusiasm, we view the cash-adjusted multiple as reasonable and see a repatriation deal as key to unlocking B/S capacity."

Coe raises his 2017 ModelWare EPS from $5.98 to $6.06, 2018 ModelWare EPS from $6.58 to $6.83 and 2019 ModelWare EPS from $7.50 to $7.82.

Coe further states "we cannot ignore the fact that ROK is attractive to many industry consolidators and this should support a premium rating. Key risks here relate to timing of anticipated cycle recovery and negative ramifications to global trade and USD from US policy proposals."

For an analyst ratings summary and ratings history on Rockwell Automation click here. For more ratings news on Rockwell Automation click here.

Shares of Rockwell Automation closed at $138.51 Friday.



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