Highlights

  • Jefferies and Berenberg have each issued buy ratings on Rotork plc, setting target prices of AUD 440 and AUD 395 respectively.
  • Rotork affirmed that full-year expectations remain unchanged following its latest trading update.
  • The company announced a new AUD 50 million share buyback programme.

Rotork plc (LSE:ROR) has received renewed support from analysts after Jefferies and Berenberg each issued buy ratings on the company. Jefferies set a target price of AUD 440, while Berenberg followed closely with a target price of AUD 395.

Trading Update: Favourable Performance Across Core Markets

In its latest update covering the four-month period to 31 October 2025, Rotork reported trading conditions in line with internal expectations. The Group delivered a 6% year-on-year increase in order intake on an organic constant currency basis. Including the contribution from Noah, the recently acquired business, order intake rose 8% over the same period.

Rotork’s Growth+ strategy continues to show positive traction, enabling the company to pursue expansion ahead of its end markets by focusing on targeted growth segments and development opportunities across new and established industries.

Divisional Developments: Broad-Based Strength

The company’s divisions each delivered operational progress during the period, reflecting the diverse demand profile underpinning Rotork’s business model.

The Oil & Gas division benefited from electrification trends in upstream markets and ongoing growth in Rotork Service. A performance in the EMEA region offset more muted conditions in Asia Pacific, resulting in steady division-wide progress.

The Chemical, Process and Industrial division delivered particularly strong results, supported by its strategic focus on high-priority segments. Growth was notable in HVAC applications, including data centre demand, and in marine markets, with both the Americas and EMEA regions contributing significantly.

Water & Power also recorded good growth, supported by investment in water infrastructure, desalination and regulatory-driven upgrades. The power market, particularly the nuclear segment, remains an encouraging long-term opportunity for the company.

Outlook and Capital Allocation: Momentum to Continue

Rotork confirmed that full-year expectations remain unchanged as the Group anticipates further progress in 2025 on an organic constant currency basis. Supported by favourable cash generation, the company announced a new AUD 50 million share buyback programme.

At 31 October 2025, Rotork held net cash of AUD 37.3 million, while returning AUD 51.7 million to shareholders during the period through dividends and the completion of a previously announced buyback.