KeyBanc Upgrades Rockwell Automation and Raises Price Targets for Emerson and WESCO

Investing.com — KeyBanc upgraded Rockwell Automation Inc (NYSE:ROK) to "overweight" and raised price targets for Emerson Electric Company (NYSE:EMR) and WESCO International amid stabilization in automation markets.

Rockwell Automation

Rockwell's price target was set at $345, with KeyBanc citing management’s renewed focus on cost-cutting and operational improvements under its new CFO. While near-term conditions remain uncertain, the firm sees stabilization in automation markets, which could support earnings growth and margin expansion for Rockwell.

Price Target Increases

KeyBanc raised its price target for Emerson to $158 from $140 and for WESCO to $245 from $225, as these multi-industry stocks are expected to benefit from onshoring, automation, and infrastructure investments as drivers of resilience in the sector.

Market Expectations

Although short-term conditions are expected to be volatile into early 2025, KeyBanc anticipates a modest recovery in organic volumes by mid-year, supported by easier comparisons, stabilizing inventories, and favorable end-market trends.

Brokerage noted that multiples on multi-industry stocks have expanded significantly, reflecting market expectations for a potential cycle inflection. Despite this, KeyBanc recommends companies with a blend of stabilizing markets, actionable initiatives, and reasonable valuations.

Conclusion

While noting ongoing uncertainty around tariffs and broader market conditions, KeyBanc remains “selectively constructive”, favoring industrial tech players poised to benefit early from a potential recovery.