Nomura Securities Maintains a 'Buy' on Rockwell Automation (ROK); Reviewing Q2
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Price: $278.65 --0%
Rating Summary:
14 Buy, 22 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 13 | New: 16
Rating Summary:
14 Buy, 22 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 13 | New: 16
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Nomura Securities maintains a 'Buy' on Rockwell Automation (NYSE: ROK) price target of $98.00.
Analyst, Shannon O'Callaghan, said, "Despite the 2Q margin miss we see three key positive drivers for ROK in fiscal 2H. 1) Incrementals. When management cautioned on lower incrementals for its fiscal 2Q, it really meant it (more than consensus, and we realized as 25% incrementals missed our 33% estimate following 57% last quarter). But we think it also means it when it confidently points to improving incrementals in the mid-high 30%s in 2H. 2) U.S. growth of 5% in 2Q would have been 8% ex a large project comp, and that comp goes away in 3Q. 3) Our call for a rebound in China was more than validated in the quarter as it not only rebounded, exiting the quarter as we expected, but actually rebounded more than we expected within the quarter (+7% in 2Q vs. down MSD in 1Q). We think better U.S., China, and incrementals set up well for Rockwell in fiscal 2H. ROK is at a ~5% discount to our sector (on our est.) vs a more normal ~10%+ premium."
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 $75.52 yesterday.
Analyst, Shannon O'Callaghan, said, "Despite the 2Q margin miss we see three key positive drivers for ROK in fiscal 2H. 1) Incrementals. When management cautioned on lower incrementals for its fiscal 2Q, it really meant it (more than consensus, and we realized as 25% incrementals missed our 33% estimate following 57% last quarter). But we think it also means it when it confidently points to improving incrementals in the mid-high 30%s in 2H. 2) U.S. growth of 5% in 2Q would have been 8% ex a large project comp, and that comp goes away in 3Q. 3) Our call for a rebound in China was more than validated in the quarter as it not only rebounded, exiting the quarter as we expected, but actually rebounded more than we expected within the quarter (+7% in 2Q vs. down MSD in 1Q). We think better U.S., China, and incrementals set up well for Rockwell in fiscal 2H. ROK is at a ~5% discount to our sector (on our est.) vs a more normal ~10%+ premium."
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 $75.52 yesterday.
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