Goldman Sachs Resumes Coverage on Rockwell Automation; “Neutral” Rating (ROK)

Goldman Sachs reported on Thursday that it has resumed coverage of industrial automation power provider, Rockwell Automation (ROK) with a “Neutral” rating.

The firm has resumed coverage of ROK, and has given the company a “Neutral” rating and $93 price target. This price target suggests a 6% increase from the stock’s current price of $86.82.

An analyst from the firm commented, “near-term, history suggests potential upside to growth targets (2013 guidance: 1-5%) but the outlook still appears mixed,” the analyst said. “Further, margin guidance also appears low, but we do not see much upside as slower growth/mix weigh on margins. Lastly, ROK’s shares have already benefited from a pro-cyclical trade (+45% since July 2012), and we believe it’s unlikely the multiple expands much unless growth accelerates materially.”

Rockwell Automation shares were mostly flat during Thursday morning trading. The stock has increased 6% in the past year.

The Bottom Line
Shares of Rockwell Automation (ROK) have a 2.17% yield, based on Thursday morning’s price of $86.45.

Rockwell Automation (ROK) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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