.png "Rexnord Corporation (NYSE: RXN)")
In a report released yesterday, Bryan Blair from Oppenheimer reiterated a Buy rating on Rexnord Corporation (RXN), with a price target of $34. The company’s shares closed yesterday at $27.75.
Blair observed:
“We expect RXN to report FY19 EBITDA toward the upper end of $437-443M guidance (notably above the high end of its initial $420-440M range) and provide a FY20 outlook underpinned by continued positive core growth, steady operational momentum, and strong FCF generation. While we anticipate moderating core growth over the coming quarters (vs. strong +MSD FY18-19 levels), we expect company-specific initiatives (e.g., DiRXN) to support top-line outgrowth of RXN’s blended end markets, with improving operating efficiency (SCOFR 2.0 benefits accelerating into FY20) driving strong cash flow outperformance. Combining this outlook with RXN’s much improved financial/strategic flexibility (<2x net leverage within sight) and discounted valuation across metrics (including coverage-high FCF yield), we remain bullish on shares. Reiterate Outperform."
According to TipRanks.com, Blair is a 4-star analyst with an average return of 10.4% and a 78.9% success rate. Blair covers the Industrial Goods sector, focusing on stocks such as Carlisle Companies Incorporated, Lincoln Electric Holdings, and Watts Water Technologies.
Rexnord Corporation has an analyst consensus of Moderate Buy, with a price target consensus of $31.
See today’s analyst top recommended stocks >>
Based on Rexnord Corporation’s latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $485 million and net profit of $45.1 million. In comparison, last year the company had a GAAP net loss of $62 million.
Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of RXN in relation to earlier this year.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Rexnord Corp. is engaged in the manufacturing of engineered power transmission, aerospace and other precision motion technology products. It operates through two segments: Process & Motion Control platform and Water Management.
