Peeling Back The Layers: Exploring Regal Rexnord Through Analyst Insights

During the last three months, 4 analysts shared their evaluations of Regal Rexnord RRX, revealing diverse outlooks from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $205.75, a high estimate of $210.00, and a low estimate of $200.00. This upward trend is evident, with the current average reflecting a 11.37% increase from the previous average price target of $184.75.

Interpreting Analyst Ratings: A Closer Look

The standing of Regal Rexnord among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Regal Rexnord. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Regal Rexnord compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Regal Rexnord's stock. This examination reveals shifts in analysts' expectations over time.

To gain a panoramic view of Regal Rexnord's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Regal Rexnord analyst ratings.

Discovering Regal Rexnord: A Closer Look

Regal Rexnord Corp is in the engineering and manufacturing of industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems, serving customers around the world. The four operating segments include Commercial Systems, Industrial Systems, Climate Solutions, and Motion Control Solutions.

Regal Rexnord's Economic Impact: An Analysis

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Regal Rexnord displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 29.2%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Regal Rexnord's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 3.48%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Regal Rexnord's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.89% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.36%, the company showcases effective utilization of assets.

Debt Management: Regal Rexnord's debt-to-equity ratio surpasses industry norms, standing at 1.03. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.