UBS Maintains a 'Neutral' on Rockwell Automation (ROK); Solid 3Q; Incremental Margins Improve

UBS maintains a 'Neutral' on Rockwell Automation (NYSE: ROK), price target lowered from $93 to $80.

UBS analyst says, "Fiscal 3Q EPS of $1.22 vs. cons. of $1.19; Sales $1.52B vs. cons. of $1.48B...Fiscal 4Q EPS guidance: $1.15-$1.25 vs. consensus of $1.23 Revised FY11 EPS guidance is $4.55-$4.65 (was $4.40-$4.60). FY11 sales guidance was raised to $5.9B, from $5.8B (consensus $5.8B), partly from FX and M&A. ROK now expects a full-year tax rate of 19%-20% (was 20%-21%), which we estimate adds ~$0.05-$0.06 to FY11E EPS. ROK also expects to make a voluntary pension contribution in fiscal 4Q, which will reduce FCF conversion to ~75%-85% for FY11E." (UBS raises FY11 EPS estimate from $4.60 to $4.65, but lowers FY12 by $0.05 to $5.45)

For more ratings news on Rockwell Automation click here and for the rating history of Rockwell Automation click here.

Shares of Rockwell Automation closed at $73.48 yesterday.

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