Oppenheimer analyst Christopher Glynn maintained a Buy rating on Regal Beloit (NYSE: RBC) yesterday and set a price target of $95. The company’s shares closed yesterday at $82.05.
Glynn observed:
“Adjusted operating profit rose 16% in 1H18 and 17% for 2Q, with five of the past six quarters showing 10% or higher adjusted OP growth. We are modeling $302M ’18E FCF for 116% FCF/ANI, consistent with long-term profile, and noting $60M higher than capex ($80M ’18E) and working capital expected a source of cash for 2018. Shares pulled back nearly 4%, perhaps on comments for price/ cost neutral or better in 2H (vs. slightly positive in 2Q), or modestly lower 2H organic relative to 6% in 1H (we think very marginally, consistent with prior guides), or potential expectations for more accelerated short cycle conversion and margin improvement at C&I. We believe RBC targets improved 2H simplification benefits for C&I.”
According to TipRanks.com, Glynn is a 5-star analyst with an average return of 11.4% and a 70.7% success rate. Glynn covers the Industrial Goods sector, focusing on stocks such as Emerson Electric Company, Honeywell International, and Roper Technologies.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Regal Beloit with a $88.60 average price target.
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Based on Regal Beloit’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $65.9 million. In comparison, last year the company had a net profit of $53 million.
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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.
