KeyBanc raises ROK stock PT to $345 from $330

On Monday, KeyBanc Capital Markets increased its price target for Rockwell Automation (NYSE:ROK) stock to $345, up from the previous $330, following insights gained at the Automate 2025 conference in Detroit. Analyst Ken Newman provided a detailed overview of the industrial technology sector, highlighting the mixed momentum across various end markets and technology verticals.

The conference revealed a persistent weakness in the original equipment automotive sector, while certain discrete applications in eCommerce/Logistics, Aerospace & Defense, and Semiconductor industries were identified as areas of relative strength. Despite the recent positive developments in China tariff negotiations, Newman noted that customers are awaiting further policy clarity before committing to a significant increase in orders.

Management teams at the event confirmed that their tariff-driven pricing strategies are still in flux but remained committed to previously announced pricing plans. With the expectation of continued volatility in automation demand in the second quarter of 2025, KeyBanc maintains a cautious yet optimistic outlook for potential order growth towards the second half of 2025 and into 2026, should tariff policy reprieves become permanent.

Rockwell Automation was a standout at the event, showcasing its OTTO Industrial Robotics business and demonstrating progress in operational excellence initiatives, which contributed to KeyBanc’s decision to raise its price target. The company’s focus on automation, consulting, and software-defined strategy indicates potential for increased demand.

Other companies that Newman noted include Applied Industrial Technologies (NYSE:AIT), which is experiencing improved activity on its automation platform, and Lincoln Electric (NASDAQ:LECO), a $11.3 billion market cap company with strong financial health, which displayed its advanced automation capabilities, including the Fori AGV and Cooper Cobot Application. According to InvestingPro data, LECO has maintained an impressive 28-year streak of dividend increases, reflecting its stable financial position. The company, currently trading near its Fair Value based on comprehensive analysis, is also preparing to launch its new LEAP system in 2026.

Zebra Technologies (NASDAQ:ZBRA) emphasized its evolving Machine Vision product offering, integrating technologies from its recent acquisition, Photoneo, into a comprehensive package. Cognex Corporation (NASDAQ:CGNX) focused on its edge computing products within its machine vision ecosystem, while Teradyne (NASDAQ:TER) showcased its Universal Robots and Mobile Industrial Robots platforms, featuring new software enhancements and applications.

Lastly, Timken Company (NYSE:TKR) highlighted its early-stage efforts in leveraging its broad portfolio for increased customer penetration and cross-selling opportunities. Newman’s observations suggest that many robotics OEMs and integrators are prioritizing solutions to address the widespread manufacturing labor constraints through automation. For investors seeking deeper insights into automation sector leaders like Lincoln Electric, InvestingPro offers comprehensive research reports with detailed financial analysis, including 10+ additional ProTips and key metrics such as the company’s impressive 35% return on equity and healthy current ratio of 1.78.

In other recent news, Lincoln Electric Holdings Inc . reported its financial results for the first quarter of 2025, revealing a mixed performance. The company announced an adjusted earnings per share (EPS) of $2.16, which fell short of the forecasted $2.24. However, Lincoln Electric surpassed revenue expectations, achieving $1 billion against a forecast of $975.87 million. Despite the revenue beat, the EPS miss led to a negative market reaction. Additionally, Lincoln Electric’s gross profit declined by 1% to $365 million, with a gross profit margin decrease of 110 basis points to 36.4%. The company maintained a strong return on invested capital at 21.5% and generated $186 million in cash flow from operations. Looking ahead, Lincoln Electric anticipates flat organic sales growth for the full year 2025. Analyst firms such as Jefferies and Oppenheimer have been closely monitoring the company’s performance, noting challenges in automation demand due to customer hesitation in capital spending.

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