A Closer Look at 5 Analyst Recommendations For Regal Rexnord

In the preceding three months, 5 analysts have released ratings for Regal Rexnord RRX, presenting a wide array of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $195.6, a high estimate of $213.00, and a low estimate of $180.00. This current average has increased by 0.31% from the previous average price target of $195.00.

Interpreting Analyst Ratings: A Closer Look

The perception of Regal Rexnord by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Regal Rexnord. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect 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.

For valuable insights into Regal Rexnord's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Regal Rexnord analyst ratings.

Delving into Regal Rexnord's Background

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.

Understanding the Numbers: Regal Rexnord's Finances

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Negative Revenue Trend: Examining Regal Rexnord's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -12.5% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Regal Rexnord's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.04% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 0.99%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Regal Rexnord's ROA stands out, surpassing industry averages. With an impressive ROA of 0.42%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Regal Rexnord's debt-to-equity ratio surpasses industry norms, standing at 0.93. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

The Basics of Analyst Ratings

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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