Rockwell Automation (ROK) Set for Weak October/November; UBS Cuts Price Target to $120

UBS reiterated a Buy rating on Rockwell Automation (NYSE: ROK), and cut the price target to $120.00 (from $135.00), following the company's 4Q earnings report. September was down 10% in the U.S. and October/early November do not look any better. The U.S. was -2.8% organically, a sharp turn down after 2Q and 3Q were both up 3%+. The weakness that Rockwell is seeing is consistent with other industrial peers and distribution.

Analyst Shannon O'Callaghan commented, "September was down 10% in the U.S. and October/early November do not look any better. Given these trends 1Q organic is seen down MSD (U.S. down HSD) with total revenues down over 10% after 7%-8% currency pressure. Sequential improvement is expected in F2H16 given the outlook for economic and industrial production growth. 2016 EPS guidance set at $5.90-$6.40 with organic sales flat to -4%. Fiscal 4Q adjusted EPS of $1.57 missed our $1.79, including $0.06 of restructuring expense that we had not expected. Organic revenues -2.3% missed our +1.0% estimate."

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 $104.18 yesterday.

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