Barclays Upgrades Rockwell Automation (ROK) Stock, Lifts PT

On May 30, Barclays analyst Julian Mitchell upped Rockwell Automation, Inc. (NYSE:ROK)’s stock from “Equal Weight” to “Overweight,” raising the price objective to $350.00 from the prior target of $283.00.

A technician in a factory setting next to an industrial automation machine.

The analyst’s reassessment of Rockwell Automation, Inc. (NYSE:ROK)’s prospects comes off the back of a stronger top-line outlook, demonstrating that the previous period of uncertainty and underperformance is concluding.

Also, the firm opines that Rockwell Automation, Inc. (NYSE:ROK)’s operating margins might recouple closer to typical multi-industry expansion rates amid its strong emphasis on operational execution. Barclays believes that the stock’s valuation multiple might not expand, but can remain steady amidst sales recovery.

The rating upgrade from the firm comes following a period of destocking by Rockwell Automation, Inc. (NYSE:ROK)’s customers and distributors, which seems to have ended, contends Mitchell. The analyst also mentioned that there was no evidence of extreme tariff-related pre-buy of the company’s products in early 2025.

Rockwell Automation, Inc. (NYSE:ROK) raised its FY 2025 margin and EPS targets on the back of healthy execution, with clear emphasis dictated by the Rockwell Operating Model. For FY 2025, it expects diluted EPS in the range of $8.23 – $9.23, up from the prior range of $7.65 – $8.85.

While we acknowledge the potential of ROK to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than ROK and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.