Daiwa upgrades Rockwell Automation after customer Tesla's Battery Day

Daiwa analyst Jairam Nathan upgraded Rockwell Automation (ROK) to Outperform from Neutral with an unchanged price target of $240. The stock closed Wednesday down $1.31 to $212.78. Tesla's (TSLA) Battery Day this week highlights the push for cell capacity and increased manufacturing efficiency, both of which would benefit Rockwell Automation, Nathan tells investors in a research note. The analyst sees upside to fiscal 2021 margin and revenue estimates for Rockwell. With higher content in electric vehicle battery pack assembly than powertrain, the company is well suited to benefit from electrification, says Nathan. The analyst points out that Tesla is a customer of Rockwell.