In a report released today, Andrew Obin from Bank of America Securities reiterated a Buy rating on Rockwell Automation, with a price target of $430.00.
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Andrew Obin has given his Buy rating due to a combination of factors that highlight Rockwell Automation’s promising growth trajectory and strategic investments. The company has reaffirmed its long-term framework for organic growth, projecting a 5-8% increase, which is supplemented by mergers and acquisitions. This growth outlook is supported by Rockwell’s focus on expanding its segment margins, with a medium-term target of 23.5%, indicating potential for further improvement.
Additionally, Rockwell’s strategic reinvestment plans, including a $2 billion investment over the next five years, are seen as a positive move. This investment is primarily directed towards capital expenditures, which are expected to enhance capacity and support future sales growth. The company’s annual recurring revenue is now contributing positively to margins, and its return to mergers and acquisitions, particularly in industrial AI and market access in Europe and Asia, further strengthens its growth prospects. These factors collectively justify the Buy rating as Rockwell Automation is positioned for above-peer margins and earnings per share growth.
Obin covers the Industrials sector, focusing on stocks such as Honeywell International, Eaton, and ITT. According to TipRanks, Obin has an average return of 15.6% and a 66.17% success rate on recommended stocks.
In another report released on November 13, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $436.00 price target.