Reuters is reporting that Credit Suisse lowered its rating on Rockwell Automation Inc. to “underperform” from “neutral,” and the share price target to $58 from $64.
In a research note, the brokerage said most investors own Rockwell Automation shares for incremental margin upside which may be more limited in the future. In the short term, the brokerage said the market had already priced in much of the good news for the company.
Rockwell has made major investments in internal infrastructure to be able to move into the process automation market, where there is the potential for significant sales upside.
It might be that if you are a Rockwell end user, you might want to invest in the company that helps you make your stuff, because the gamblers are blowing this pop stand.
Much more bad news like this, and Rockwell might start running scared.