Rockwell Automation (ROK) PT Raised to $329 at Goldman Sachs

Goldman Sachs analyst Joe Ritchie raised the price target on Rockwell Automation (NYSE: ROK) to $329.00 (from $302.00) while maintaining a Sell rating.

The analyst comments "Bottom line: Updating estimates post F3Q25. ROK reported a +4% segment EBIT beat vs. FactSet consensus driven by better results in Software & Control that were only partially offset by softer Lifecycle Services results. Book-to-bill was ~1.0x, implying $2.1bn in orders, +MSD q/q per our estimate. FY organic sales expectations were updated to -2% to +1% (by 50bps at the mid-point) driven by tariff-based pricing. ROK also narrowed the FY25 EPS guide towards the high end of the range ($9.80-$10.20). Of note, ROK achieved its FY25 $250mn productivity target this quarter. Going forward, productivity will be embedded as part of core operating actions. Management also noted a 2%-3% point increase in the FY26 effective tax rate. All in, we raise our FY25/FY26/FY27 EPS estimates to $10.15/$11.50/$12.75. While we have a constructive view on US re-industrialization, we have a relative preference to other stocks (e.g., ETN, IR, PH) in our coverage, and as such, remain Sell-rated. That said, we are buoyed by the cost improvement and could get more constructive if we start to see signs of a more material inflection in orders. Our PT $329 (prior $302) implies a FY27 FCF yield of ~3.5%."

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