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Rockwell Automation’s Price Target Raised at BofA/Merrill Lynch and Barclays (ROK)

By Dividend.com Staff
November 10th, 2009

rockwell-automations-price-target-raised-at-bofamerrill-lynch-and-barclays-rok

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.

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Disclaimer: Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. The author is not registered as an investment adviser. The author may or may not hold positions in the securities mentioned in this article or video. The author relies upon the "publisher's exclusion" from the definition of "investment adviser" as provided under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws.