Rockwell Automation (ROK +5.2%) is on the rise after BofA upgrades shares to Buy from Neutral with a $250 price target, raised from $205, viewing the company as well positioned to benefit from accelerating levels of factory automation in the wake of supply chain disruptions from COVID-19.
Industrial automation will be a “key beneficiary” of the rebuilding of U.S. manufacturing capacity as well as tariffs and increasing geopolitical tensions, BofA believes.
For FY 2021, BofA raises its EPS estimate by $0.25 to $8.00, or +16% Y/Y, reflecting 2% improved revenue and 10 bps higher margin, and raises its FY 2022 EPS estimate by $0.65 to $9.40 based on 8% Y/Y revenue growth and 100 bps of margin expansion.
ROK’s average Wall Street analyst rating, Seeking Alpha Authors’ Rating and Quant Rating are all Neutral.
