Rockwell Automation upgraded to Overweight from Sector Weight at KeyBanc

KeyBanc analyst Ken Newman upgraded Rockwell Automation (ROK) to Overweight from Sector Weight with a $345 price target The firm is taking a “selectively constructive approach” toward its early-cycle industrial technology and distribution coverage. While acknowledging the upgrade could be viewed as early given the limited cycle visibility and Rockwell’s recent earnings misses, the firm thinks management’s renewed focus on cost-out initiatives and improving its operational excellence metrics could place the company back on a path of driving earnings growth and margin expansion in coming years. Rockwell’s new CFO Christian Rothe brings with him a sense of increased transparency to improving margins, and KeyBanc is encouraged by updates provided at the analyst day, says the firm.