Rockwell Automation (ROK) Automation Fair Highlights Path to $9B - Morgan Stanley

Morgan Stanley analyst Joshua Pokrzywinski reiterated an Overweight rating and $387.00 price target on Rockwell Automation (NYSE: ROK) after attending the company's Automation Fair tradeshow and analyst meeting. The show offered 5 key takeaways:

1) Some investors remain skeptical on the FY22 revenue guidance and orders underpinning it but the analyst believes the orders are real.

2) Cyber and sustainability stand out as particularly interesting growth drivers because they are becoming table stakes for customers

3) The applications discussed across end markets were much more broad and speak to the similar breadth of the 15% growth outlook for FY22, roughly equivalent across discrete,hybrid,and process markets.

4) ROK is highly focused on commercial intensity using partners, distributors, and its own consultancy platform.

5) Management is more confident in its supply chain entering FY22 and is investing in capacity.

The analyst stated "ROK’s bullish view on FY22 was one of the more positive calls on capex and cyclical momentum this earnings season. Automation Fair supported what makes this cycle different and made the path to $9B in FY23 more plausible."

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 $333.48 yesterday.

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