Rockwell Automation To See Wholesome Orders Ducking The Demand Destruction Development, Says Morgan Stanley

  • Morgan Stanley analyst Joshua Pokrzywinski reiterated an Obese score on the shares of Rockwell Automation Inc (NYSE: ROK) and raised the price target from $284 to $335.

  • Close to-shoring stays one of many extra topical market themes, however ROK’s provide chain points have held again efficiency as much as this quarter, mentioned the analyst.

  • With a big backlog trying much less prone to be canceled, and resilient near-term order charges, the analyst sees a big upside to consensus over the following two years and expects restricted cyclical a number of compression.

  • Total, the analyst continues to see ROK’s backlog and structural adjustments in buyer habits collectively offering the visibility to develop via an IP slowdown.

  • The analyst additional expects automation content material in capex spending to develop as labor provide and know-how adoption help the willingness and talent to automate and customise product classes traditionally deemed too costly.

  • Additionally LearnRockwell Automation Q1 Earnings Top Estimates; Boosts FY23 Forecast

  • ROK famous each orders and backlog had been up sequentially, an indication of continued manufacturing capex/ nearshoring demand, the analyst mentioned.

  • Inside FY23 income steering, ROK expects all of its markets (i.e. Discrete, Course of, and Hybrid) to develop low-teens, representing an enchancment in Discrete and Hybrid vs. prior steering, cited the analyst.

  • The analyst mentioned there’s a continued conviction in a generational capex cycle regardless of a slowing macro setting and uneven provide chain.

  • The analyst expects orders to stay wholesome as different verticals, each shopper and different short-cycle industrial markets, deal with demand destruction from rising charges and chronic inflation.

  • Value Motion: ROK shares are buying and selling increased by 0.27% at $282.64 on the final examine Friday.

Newest Rankings for ROK






Jan 2022

Credit score Suisse



Jan 2022


Initiates Protection On


Dec 2021


Initiates Protection On


View More Analyst Ratings for ROK

View the Latest Analyst Ratings

Do not miss real-time alerts in your shares – be part of Benzinga Pro totally free! Try the tool that will help you invest smarter, faster, and better.

This text initially appeared on

© 2023 Benzinga doesn’t present funding recommendation. All rights reserved.

Previous post Fifth Wall, centered on actual property tech and managing $3.2B, appears to be like to eat up much more of its market
Next post 20-40-100 Years In the past — Jan. 28