In turning down a rather rich bid from Emerson (EMR), Rockwell (ROK)
certainly signaled that the board has a lot of confidence about where
this leading automation player is heading. Although Rockwell isn't, and
never has tried to be, "all things to all customers", the company's
strong presence in process and hybrid automation and its emerging
industrial IoT platform doesn't make that confidence completely
unfounded.
As is so often the case with Rockwell,
valuation continues to be my primary concern. While there are some
valuation approaches that suggest Rockwell's valuation isn't excessive,
it's not a bargain either, even if Emerson was willing to pay more than
today's price to own the company.
Continue here:
High Expectations Remain The Theme For Rockwell Automation
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