Analyst Note| Joshua Aguilar |
Nothing in wide-moat rated Rockwell Automation’s latest results materially alters our long-term view of the firm. Therefore, we maintain our $238 fair value estimate. For the fiscal third quarter, Rockwell outperformed the expectations embedded in our full-year fiscal 2021 projections for top-line growth, operating margins, and free cash flow, though our earnings expectations remain fairly unchanged. However, any good news in operating performance was offset in our model by the effect of our probability-adjusted view of U.S. corporate tax reform beginning in 2022.