Joseph C Giordano, an analyst from TD Cowen, maintained the Hold rating on Rockwell Automation. The associated price target is $330.00.
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Joseph C Giordano has given his Hold rating due to a combination of factors, including the current stabilization in markets despite weak PMI readings. Although there is a modest increase in the FY26 organic growth estimate, it is primarily concentrated in the first half of the year, with the second half showing less promising growth at a high earnings multiple. The potential for a cyclical recovery and self-help margin improvements are acknowledged, but evidence of a significant recovery is still lacking.
Moreover, while manufacturing spending has decreased from peak levels, orders have stabilized, which is a positive sign. However, the ongoing weakness in broad industrial readings suggests that a turnaround is not yet imminent. The projected price target of $330 assumes generous P/E ratios for FY26 and FY27, which may not be justified without clear signs of substantial market growth. Consequently, the Hold rating reflects the need for more concrete evidence of a robust recovery before considering a more optimistic outlook.
In another report released on November 20, Mizuho Securities also maintained a Hold rating on the stock with a $380.00 price target.