CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We keep our 12-month target price at $325, valuing shares at 23x our FY 25 (Sep.) EPS estimate (initiated at $14.15; 2024 EPS outlook lifted to $13.24 from $13.12), near ROK’s five-year forward P/E average. ROK posted Sep-Q operating EPS of $3.64 vs. $3.04 (+20% Y/ Y), beating consensus by $0.17. Sep-Q sales grew 21% Y/Y (up 18% organically), reflecting broad-based growth across ROK’s businesses as recovering supply chains enabled a reduction in lead times on shipments. ROK’s capacity investments are bearing fruit, with backlogs seeing a meaningful reduction in the Sep-Q. However, backlogs continue to be well above pre-pandemic levels ($4.1 billion) and will take several quarters to normalize, in our view. Shares are trading somewhat lower following ROK’s Sep-Q print given, in our opinion, a conservative outlook for FY 24. We believe ROK can achieve the higher end of its FY 24 guidance. We keep shares at Buy.