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Research Alert: CFRA Maintains Hold Opinion On Shares Of Rockwell Automation Inc.
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Research Alert: CFRA Maintains Hold Opinion On Shares Of Rockwell Automation Inc.
Nov 6, 2025 11:11 PM

01:50 AM EST, 11/07/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target on shares of ROK to $400 from $350 following its Q4 FY 25 (Sep.) results, valuing shares at 30.8x our newly initiated FY 27 EPS outlook of $13.00 (FY 26 EPS estimate adjusted to $11.73 from $11.67). ROK's Q4 FY 25 organic sales accelerated 13% Y/Y, boosted by standout performance in Software & Control, which surged 31% Y/Y to $657M with operating margin expanding to 31.2% from 22.4% in the prior year. Operating EPS of $3.34 rose 32% Y/Y, exceeding expectations, while total segment operating margin expanded 220 bps to 22.5%. We believe this momentum informed ROK's positive FY 26 outlook implying double-digit earnings expansion with $11.70 midpoint guidance vs. $11.48 consensus. Software's favorable margin profile benefits overall earnings quality as it becomes a larger share of the sales mix, offsetting headwinds in other businesses including Lifecycle Services, which declined 3% Y/Y due to customer caution around discretionary service spending.

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