Barclays upgrades Rockwell Automation into sales improvement

Barclays upgraded Rockwell Automation (ROK) to Overweight from Equal Weight with a price target of $350, up from $283. The company’s sales will show an improvement alongside a rebound in factory automation markets, the analyst tells investors in a research note. The firm also believes Rockwell’s operating margins are likely to “re-couple” closer to typical multi-industry expansion rates, after a hiatus over the past 5-10 years, amid the company’s greater focus on operational execution. Barclays says the stock’s valuation multiple may not expand much, but can at least “hold steady” as a sales recovery takes hold.