Milwaukee-based automation and robotics producer Rockwell Automation (ROK) gets another Buy recommendation today from Zacks senior technology analyst Abdul Saleh. Here's why:
'Rockwell Automation is the world's largest industrial automation company, providing power, and control and information solutions to improve manufacturing capacity. Results for the fourth quarter of fiscal 2007 beat our revenue estimates, but came in-line with our EPS estimate.
'North America sales appear to be on solid ground despite overall macro concerns, although the global near-term economic outlook appears at odds with management's confident FY2008 outlook, given the expectations for acceleration domestically and maintaining mid-teens international growth.
'Acquisitions are now providing more top-line boost, but likely at the cost of mitigating operating leverage. ROK provided healthy FY2008 EPS guidance of $4.25-$4.45 (up 15-20%) versus consensus of $4.30. Management is confident recent growth investments and international diversification will deliver FY2008 revenue up 10%-12% (including acquisition/FX of +4%), with International expected to deliver mid-teens organic growth and North America accelerating modestly to mid-single-digits. Consequently, we are reiterating our Buy rating on the shares with a target price of $74.'
Read the full analyst report on ROK.
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