Rockwell Automation (ROK) has received backing from analysts after reporting its Q1 FY25 results. Despite a mixed performance, analysts remained bullish as both earnings and sales exceeded expectations. Overall, the company’s disciplined cost management and strong cash flow presented a positive outlook. Following the results, ROK stock surged over 12% on Monday.
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Rockwell Delivers Mixed Q1 Results
In Q1, Rockwell reported adjusted EPS (earnings per share) of $1.83, surpassing analyst expectations of $1.59, despite a 10% decline from the previous year. Meanwhile, sales declined by 8.4% year-over-year to $1.88 billion. On the plus side, the company’ Q1 orders increased approximately 10% year-over-year and grew by mid-single digits sequentially.
Looking ahead, Rockwell adjusted its annual sales forecast, expecting between $8.1 billion and $8.2 billion.
Citi Maintains a Bullish Stance on ROK Stock
Five-star-rated analyst Andrew Kaplowitz from Citi reiterated his Buy rating on the stock. He also raised his price target from $345 to $350, predicting a growth rate of 16%. Kaplowitz stated that the company began fiscal 2025 on a strong note, showing improvements in order trends and overall performance. He believes that better operational performance, along with a stronger focus on cost control and productivity initiatives, will help sustain Rockwell’s margin in the future.
Oppenheimer Sticks with Buy Rating
Similarly, Oppenheimer reiterated its Buy rating on ROK stock. However, its price target of $300 aligns with the current share price, offering limited growth potential.
Despite this, Oppenheimer views Rockwell as well-positioned for 2025 growth, driven by its focus on internal improvements and continued investments in technology.
Is Rockwell Automation a Good Stock to Buy?
ROK stock holds a consensus Moderate Buy rating from 19 Wall Street analysts, including 10 Buys, seven Holds, and two Sells assigned in the last three months. The Rockwell Automation average share price target of $306.18 suggests an upside of 1.27% from its current price.
ROK stock has gained nearly 20% in the last six months.
