Rockwell Automation price target raised to $380 from $370 at KeyBanc

Investing.com - KeyBanc raised its price target on Rockwell Automation (NYSE:ROK) to $380 from $370 on Thursday, while maintaining an Overweight rating on the industrial automation company’s stock. The new target sits within the broader analyst range of $229 to $410, with InvestingPro data showing 8 analysts recently revising their earnings estimates upward for the upcoming period.

The price target increase follows Rockwell’s third-quarter 2025 earnings beat, which KeyBanc attributed to stronger pricing and operational excellence initiatives. The company achieved its $250 million year-over-year savings target a quarter earlier than originally anticipated. With a market capitalization of $37.73 billion and trailing twelve-month revenue of $8.06 billion, Rockwell maintains strong financial metrics, including a healthy current ratio of 2.14 and gross profit margin of 39.5%.

KeyBanc acknowledged some investor concerns about potential pre-buy activity in the quarter, which Rockwell quantified at 2-3% of quarterly performance. However, the firm noted that even excluding this pre-buy activity, revenue would have still exceeded both consensus and KeyBanc estimates.

The research firm expressed confidence in Rockwell’s cost-reduction initiatives and improving Discrete and Hybrid cycle dynamics, which it believes should continue to drive solid operating leverage. KeyBanc also expects Rockwell to realize additional benefits from tariff-related pricing with favorable price/cost dynamics and further SG&A leverage.

Despite some concerns around pre-buy activity, KeyBanc concluded that improving cycle visibility and self-help initiatives create a positive risk/reward profile for Rockwell Automation shares. According to InvestingPro, the company has maintained dividend payments for 55 consecutive years and shows fair overall financial health. For deeper insights into Rockwell’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Rockwell Automation reported its third-quarter earnings for 2025, surpassing analyst expectations with an adjusted earnings per share (EPS) of $2.82, compared to the forecasted $2.67. The company also reported revenues of $2.14 billion, exceeding the anticipated $2.07 billion. Despite these positive results, the stock experienced a decline in pre-market trading. Additionally, Morgan Stanley (NYSE:MS) raised its price target for Rockwell Automation to $385 from $350, while maintaining an Overweight rating. The price target adjustment followed Rockwell’s fiscal third-quarter results, which, despite exceeding expectations, faced concerns about customer pre-buying and challenges anticipated into fiscal 2026. These developments highlight the mixed reactions from the market despite the company’s strong financial performance.

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