Oppenheimer analyst Christopher Glynn maintained a Buy rating on Regal Beloit (NYSE: RBC) today and set a price target of $95. The company’s shares opened today at $78.
Glynn observed:
“RBC raised midpoint of 2018 guidance $0.25, with $0.13-0.15 from Nicotra Gebhardt deal. We believe initial EPS contribution looks a touch conservative, on implied ~8% adjusted OM (vs. ~13% EBITDA margin) and no synergies assumed. C&I OM recovery remained light at up 10 bps y-o-y, though RBC guided to sequential improvement through the year and 1Q OM was 50 bps above full year 2017 (commodity headwinds hit more heavily in 2H17; 1Q18 was p/c neutral y-o-y). Similarly, simplification benefits are expected to build through the year. RBC continues to note optimism to 2019 OM target of 11.7-12.0%, +150 bps vs. 2017 at low end, which we think suggests more headroom for 2018 guidance as a bridge (considering p/c neutral to slightly positive for the balance of ’18).”
According to TipRanks.com, Glynn is a 5-star analyst with an average return of 10.0% and a 64.3% success rate. Glynn covers the Industrial Goods sector, focusing on stocks such as Emerson Electric Company, Honeywell International, and Roper Technologies.
Regal Beloit has an analyst consensus of Moderate Buy, with a price target consensus of $84.25.
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Regal Beloit’s market cap is currently $3.44B and has a P/E ratio of 15.43. The company has a Price to Book ratio of 1.48.
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Regal Beloit Corp. engages in the manufacture of electric motors, electrical motion controls, power generation, and power transmission products. It operates through the following segments: Commercial and Industrial Systems, Climate Solutions, and Power Transmission Solutions.
