Oppenheimer Initiates Outperform On Rexnord; Sees 20% For The Stock

In a research report issued yesterday, Oppenheimer analyst Jim Giannakouros initiated coverage on shares of Rexnord (NYSE:RXN) with an Outperform rating and a $35 price target, which represents a potential upside of 20% from where the stock is currently trading.

Giannakouros said, “We are initiating coverage on Rexnord based on 17.5x our FY16E EPS. RXN is a global leader in its served markets and appears well positioned to grow both organically and via its committed acquisition plan. RXN reports as two segments: Process & Motion Control (PMC), which specializes in gears, couplings, bearings, and conveying equipment; and Water Management (WM), which offers drainage products, flush valves and faucet products, and engineered valves/gates in water/wastewater treatment markets. Coupling improving market demand across platforms with RXN’s 1) lean operating philosophy (RBS) offering multiple-year runway to margin expansion and 2) a large pipeline of M&A prospects to augment growth sum to sustainable outperformance, in our view.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jim Giannakouros has a total average return of 3.6% and a 40.0% success rate. Giannakouros has an average return when recommending RXN, and is ranked #1651 out of 3295 analysts.

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