The Dividend Daily

Morgan Stanley reported that they have downgraded industrial automation power provider, Rockwell Automation(ROK) on Tuesday.

The firm has reduced their rating for ROK from “Neutral” to “Underweight,” and has increased their price target for the company from $81 to $84. This price target suggests a -3.5 decline in the stock’s current price of $86.93.

A Morgan Stanley analyst noted, “we see little opportunity for upward EPS revisions in near term given weak CapEx outlook nor multiple expansion (latter stage of cycle typically sees ROK at discount) and so expect the stock to underperform the peer group. Downgrade to UW given 3% downside to our upwardly revised $84 PT.”

Rockwell Automation shares were mostly flat during premarket trading Tuesday. The stock has increased 20% in the past year.

The Bottom Line
Shares of Rockwell Automation (ROK) have a 2.16% dividend yield, based on last night’s closing stock price of $86.93. The stock has technical support in the $80-$82 price area. The stock is approaching the all-time high range of $94-$95 price levels.

Rockwell Automation(ROK) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 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.