Bank of America Reiterates Buy, $88 Target on Rockwell Automotive
Bank of America maintains its Buy rating and $88 target price on Rockwell Automotive Corporation (NYSE: ROK) as it sees the company's technology key to competing with larger established players in the sector.
Bank of America notes, "Rockwell's strategy for penetrating process has been to offer customers a modular approach to upgrading aging legacy systems which generally competitors are not able to offer (vs. an entirely new system). In turn, this offering provides customers a less risky and lower cost alternative toward future platform upgrades. We believe this “grind it out” approach is already paying off. For example, Rockwell estimates it has converted some 200 customers from Bailey to Rockwell over the years (ABB purchased Elsag Bailey in 1998). The company estimates the associated available market potential to be worth several $ billion over the coming years."
ROK closed at 72.09 per share on Monday.
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