Latest News: Analyst Downgrades Rockwell Automation. Intel Stock Price Prediction 2025 Is Looking Promising.
Aug 31, 2023
The revival of the manufacturing sector in the United States is largely attributed to a trifecta of legislation: the CHIPS Act, Inflation Reduction Act and Infrastructure Investment and Jobs Act. While this offers great opportunities for businesses, investors are often wary as stock prices can soar with high expectations surrounding such developments.
On Wednesday, Julian Mitchell of Barclays revised his stance on Rockwell Automation’s (ROK) stock from a Hold to a Sell. The analyst had also reduced the target price for the shares of the manufacturing automation company to $287 from $300.
Rockwell is providing the equipment needed to get manufacturing plants of many industries up and running, ranging from snack production to vehicle construction. As Intel (INTC) and Ford Motor (F), amongst other companies, are creating new factories, orders and related tasks have increased for Rockwell.
With Intel stock price prediction 2025 indicating further growth of the company, it is likely that Rockwell will have plenty of opportunities to provide its services in the coming years.
The stock price of Rockwell has risen 23% since the start of the year and is currently trading at 24 times its estimated 12-month earnings. This is higher than the average P/E ratio of 22 that was seen in recent years, according to FactSet’s data.
Mitchell sees the stock price as reflecting too much optimism and is urging investors to take profits.
Investors and analysts are in agreement that Rockwell’s stock is a Sell. Led by Mitchell, the majority of analysts have given the company a thumbs down rating, with only 33% recommending it as a Buy compared to the average S&P 500 ratings of 55%. Just a year ago, the Buy rating was higher at 38%.
Analysts have set an average price target for the stock to be roughly the same as its current price of $314 per share.
Shares of the company were down 1.1% on Wednesday morning prior to the opening bell, trading at $313.50 per share. S&P 500 (SPX) and Dow Jones Industrial Average (DJIA) futures remained steady.
Recently, analysts have expressed optimism about Rockwell due to the resurgence of manufacturing in the United States, which they anticipate will bring long-term financial gains such as increased profits and higher revenue growth for the firm.
What About Intel?
Intel stock recently saw a dramatic bounce due to its successful quarterly results. Investors are bullish on this once-hated chipmaker, but according to Intel CFO David Zinsner, there is some “wallet shift” from Intel to rivals like Nvidia for their GPU chips used in AI applications.
This admission might be concerning, as it points to rivals outdoing Intel in certain AI hardware niche markets.
Still, Intel’s investors were elated on Tuesday when the company announced a new, highly efficient chip. As a result of the good news, Intel’s stock value rose by more than 2%, closing out the day on an upward trend. Combined with the company’s plans for future growth and innovation, this has prompted some analysts to predict that Intel stock could reach as high as $50 by 2025. With so much potential growth on the horizon, it’s safe to say that Intel stock price prediction 2025 is looking promising.