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Investing.com - Morgan Stanley (NYSE:MS) raised its price target on Rockwell Automation (NYSE:ROK) to $385 from $350 on Thursday, while maintaining an Overweight rating on the industrial automation company.
The price target increase follows Rockwell’s fiscal third-quarter results, which beat expectations despite shares trading down approximately 5% after the report due to concerns about customer pre-buying and below-the-line headwinds into fiscal 2026.
Morgan Stanley noted that Rockwell’s orders outpaced expectations in the quarter, supporting the view that the company is in the early stages of a strong and durable upcycle driven by U.S. reshoring trends, positioning it for organic acceleration and positive revisions into fiscal 2026.
Orders improved sequentially for the third straight quarter and increased mid-single digits quarter-over-quarter and low double digits year-over-year, which Morgan Stanley interprets as a signal that policy is driving higher investment in U.S. manufacturing and bringing competitive tailwinds for Rockwell.
The firm highlighted that Rockwell’s Discrete segment outpaced the peer group by 10 percentage points in the June quarter, reversing earlier concerns about market share loss, while fiscal third-quarter orders annualized to approximately $8.6 billion, already tracking in line with fiscal 2026 revenue estimates.
In other recent news, Rockwell Automation announced its third-quarter earnings for 2025, surpassing analyst expectations. The company reported an adjusted earnings per share (EPS) of $2.82, exceeding the forecasted $2.67. Additionally, Rockwell Automation’s revenues reached $2.14 billion, surpassing the anticipated $2.07 billion. Despite these positive financial results, the stock experienced a decline in pre-market trading. However, the focus remains on the company’s ability to outperform earnings and revenue projections. These recent developments highlight Rockwell Automation’s financial performance in the current quarter.
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