TD Cowen has upgraded Rockwell Automation from ‘Sell’ to ‘Hold’, raising the price target from \$215 to \$275. This adjustment reflects improved near-term earnings potential, attributed to effective cost control measures and stabilization of orders. While growth concerns and macroeconomic uncertainties persist, the company’s recent performance indicates a more balanced outlook.
📌 The company’s second-quarter earnings surpassed expectations, with an adjusted EPS of \$2.45 compared to the forecasted \$2.09, and revenue reaching \$2 billion, exceeding the anticipated \$1.96 billion. Consequently, Rockwell raised its full-year EPS guidance to \$9.70 at the midpoint.
📌 Rockwell Automation has a strong dividend history, maintaining payments for 55 consecutive years. The current dividend yield stands at approximately 2.02%, with a payout ratio of 63.4%. The next dividend payment of \$1.31 per share is scheduled for June 10, 2025, with an ex-dividend date of May 19, 2025.
📌 In summary, Rockwell Automation’s upgrade reflects confidence in its cost management and order stabilization, suggesting a more favorable risk-reward balance despite ongoing growth challenges.