How Do Analysts Rate Rockwell Automation Stock Prior to Its Fiscal 1Q17 Results?



Analyst recommendations

Of the 24 analysts covering Rockwell Automation stock, three analysts (13%) gave the company a “buy” recommendation, while 17 analysts (71%) gave it a “hold.” Four analysts (17%) covering the stock have recommended it as a “sell” as of January 20, 2017.

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Price target

Since the release of Rockwell’s (ROK) 4Q16 results, nine of 24 analysts covering the Rockwell stock have raised their price targets. Rockwell’s consensus 12-month target price was $131.63 as on January 20, 2017. The company’s stock price closed at about $140.56 on January 20, 2017.

Among the major banks (IYF), Morgan Stanley (MS) has given an “equal weight” rating and a 12-month target of $145. Barclays (BCS) is “overweight” on the stock, with a price target of $143. By comparison, Credit Suisse (CS) has given a “neutral” rating and a target price of $121.

Consensus estimates

Analysts expect Rockwell Automation to report muted 1Q17 revenue figures, both YoY (year-over-year) and sequentially. For 1Q16, ROK’s adjusted EPS (earning per share) came in at $1.49. For fiscal 1Q17, analysts anticipate that the company’s adjusted EPS will be around $1.44.

Analysts also expect ROK peers Emerson Electric (EMR) and AMETEK (AME) to report lower YoY adjusted EPS in their respective upcoming earning results. Honeywell International (HON) is expected to report higher EPS on a YoY basis.

In the next few parts of this series, we’ll analyze analysts’ expectations and discuss whether these recommendations are conservative or optimistic.


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