In a report released yesterday, Bryan Blair from Oppenheimer upgraded Rexnord Corporation (RXN) to Buy, with a price target of $35. The company’s shares closed on Friday at $26.36.
Blair noted:
“RXN reported F3Q19 adj. EPS of $0.47 vs. our $0.41E, with in-line segment profitability aided by a lower than anticipated tax rate. The quarter was highlighted by +6% y/y core growth, +11% adj. EBITDA expansion, sustained traction toward > $200M annual FCF generation, and further reduction of net leverage (now 2.3x, with 2.1x expected by fiscal year-end). Given strong performance through F3Q, generally favorable end-market trends across PMC and WM, and accelerating FY18 deal contributions (Centa in particular), management again raised FY19 EBITDA guidance to $437-443M (midpoint now +$10M vs. initial range). Combining RXN’s constructive demand outlook, ramping digital strategy (affording outgrowth prospects), and self- help levers, we anticipate materially stronger FY20 cash generation and view risk/ reward as highly attractive. Reiterate Outperform.”
According to TipRanks.com, Blair is a 1-star analyst with an average return of -2.9% and a 44.4% success rate. Blair covers the Industrial Goods sector, focusing on stocks such as Carlisle Companies Incorporated, Watts Water Technologies, and Mueller Water Products.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Rexnord Corporation with a $29.75 average price target, implying a 12.9% upside from current levels. In a report issued on January 25, Robert W. Baird also maintained a Buy rating on the stock with a $29 price target.
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The company has a one-year high of $32.11 and a one-year low of $21.38. Currently, Rexnord Corporation has an average volume of 596.7K.
Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is negative on the stock. Most recently, in December 2018, Craig Wehr, the Group Ex., President-Zurn of RXN sold 14,964 shares for a total of $418,992.
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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.
