Buy Rating for Rotork plc: Strong Order Intake and Undervaluation Highlight Growth Potential

Analyst Andrew Douglas of Jefferies reiterated a Buy rating on Rotork plc (ROR – Research Report), reducing the price target to p430.00.

Andrew Douglas has given his Buy rating due to a combination of factors including Rotork plc’s recent solid trading update and the company’s strong order intake, particularly in the Water & Power division. The management’s narrative aligned with expectations, reinforcing confidence in the company’s strategic direction. Despite the lack of excitement in sales progress, the positive trends in order intake suggest a robust future performance.
Furthermore, Douglas highlights that Rotork is fundamentally undervalued, with a positive outlook supported by a strong balance sheet. This financial strength positions the company well for potential mergers and acquisitions or share buybacks, adding to the attractiveness of the stock. As a result, the price target has been set at 430p, reflecting the analyst’s optimistic view of the company’s prospects.

In another report released on May 6, J.P. Morgan also maintained a Buy rating on the stock with a £3.80 price target.