Morgan Stanley: Rockwell Automation Is Hidden Reshoring Winner

Morgan Stanley analysts see Rockwell Automation as a hidden winner from the US reshoring trend, which could last decades. The analysis is based on a week-long visit with the company's management.

Rating Change

Morgan Stanley did not announce an official change in rating or price target for Rockwell Automation (NYSE: ROK) in the report, but emphasized the stock's long-term growth potential due to the reshoring trend.

Analyst's Rationale

Analysts believe Rockwell Automation is uniquely positioned to benefit from:

• Reshoring: Supply chains returning to the US, increasing demand for automation solutions.
• Data Centers: Growing demand for energy and infrastructure requires advanced control and automation systems.
• Industrial Transformation: Companies moving toward digitalization and operational efficiency.

Context

Rockwell Automation's stock has been volatile recently, but analysts see long-term focus as potentially rewarding. Other analysts have mixed views, but Morgan Stanley stands out as bullish.

What to Make of It

Despite no explicit recommendation, Morgan Stanley's analysis suggests Rockwell Automation could be a good investment for those seeking exposure to the long-term reshoring trend, while acknowledging risks related to valuation and the economic cycle.