TD Cowen analyst Joseph C Giordano has maintained their bearish stance on ROK stock, giving a Sell rating on February 11.
Joseph C Giordano has given his Sell rating due to a combination of factors impacting Rockwell Automation’s outlook. Despite the positive aspect of orders exceeding $2 billion, there are concerns about the sustainability of this trend, as management will no longer report this metric, possibly indicating a decline in future orders. The core markets for Rockwell Automation, such as automotive, food and beverage, and consumer packaged goods, face challenging capital expenditure environments, with expectations of declines or modest growth.
Furthermore, while inventory normalization has provided some benefit, there is little evidence of a significant demand acceleration in discrete automation. Revenue trends across Rockwell’s segments are expected to deteriorate through FY25, with only potential improvement in the latter part of the year. Although there are cost reduction opportunities that could strengthen the company’s foundation, the current market conditions do not show strong signs of improvement, leading to the Sell recommendation.
In another report released on February 11, Goldman Sachs also maintained a Sell rating on the stock with a $290.00 price target.