Rockwell Automation (ROK) PT Raised to $330 at KeyBanc

KeyBanc analyst Ken Newman raised the price target on Rockwell Automation (NYSE: ROK) to $330.00 (from $275.00) while maintaining a Overweight rating.

The analyst comments "ROK shares outperformed following its 2Q25 beat driven by stronger margins and solid execution from operational excellence initiatives. On the call, mgmt. cited stable order momentum across most of its served end markets with book-to-bill expected to remain at ~1.0x for the remainder of the year. Although ROK maintained its FY25 organic sales guide of -4% to +2%, we think the outlook is likely taking a conservative approach to allow for uncertainty around potential project timing. Furthermore, we note that organic guide range doesn’t assume any incremental pricing from mitigating tariff actions. While ROK intends for any incremental pricing actions to result in a price/cost neutrality at the GP level, we think mgmt’s aggressive progress on ongoing cost-out initiatives could support better SG&A leverage on that potentially higher revenue base to drive modestly stronger EPS growth. From a cycle perspective, we think ROK remains well-positioned to navigate NT macro dynamics, particularly given its N.A.-centered exposure, and we think the Company should be a net beneficiary over the LT as a result of re/ nearshoring trends. In the event that demand recovers faster, we think bullcase earnings power could approach ~$13.40 in FY26. As we think about ROK's opportunity for improving visibility of cycle conditions, particularly as Discrete markets return to y/y growth, and progression of its self-help initiatives, we continue to view risk/reward as skewing favorably. As such, we reiterate our OW rating and are raising our price target to $330 from $275."

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