Nomura Securities Maintains a 'Buy' on Rockwell Automation (ROK); Even More Positive After Dividend/Buyback Announcement

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Nomura Securities maintains a 'Buy' on Rockwell Automation (NYSE: ROK) price target of $98.00.

Analyst, Shannon O'Callaghan, said, "On 6/8 Rockwell announced a new $1B share repurchase authorization along with an 11% dividend increase, and has sharply increased the pace of buyback in the last 2 months. Rockwell is a premier automation company, but we think the short cycle nature of Rockwell’s sales and its strong operating leverage make investors concerned in times of uncertainty (reflected in recent multiple compression). Management’s share repurchase behavior suggests they view times like these as a good time to buy, and we agree. Our $98 price target is based on 16x our 2013 EPS estimate of $6.15 (vs. Street at $5.99)."

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 $69.87 yesterday, with a 52 week range of $50.36-$89.79.

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