The Dividend Daily

Industrial automation solutions company Rockwell Automation (ROK) saw its price target boosted on Tuesday by analysts at both Bank of America/Merrill Lynch and Barclays Capital.

Bank of America/Merrill Lynch raised its price target for ROK to $55 from a prior $50. The analyst also set its 2010 and 2011 EPS estimates at $2.00 and $2.75, respectively, and maintained its “Buy” rating on the stock.

Barclays Capital boosted its own price target on ROK to $58 from a prior $55, following the company’s fourth quarter earnings beat. The analyst also raised its 2010 earnings estimates slightly, and reiterated its “Overweight” rating on the stock.

Rockwell Automation shares, which closed at $43.30 on Monday, rose 85 cents, or +2%, in morning trading Tuesday.

The Bottom Line
We have avoided shares of ROK since our early June coverage began last year, when the stock was trading at $53.90. The stock has a 2.68% dividend yield, based on last night’s closing stock price of $43.30. The stock has technical support in the $35 price area. If the shares can firm up, we see overhead resistance around the $45-$50 price range. We would remain on the sidelines for now.

Rockwell Automation (ROK) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.