What Analysts Are Saying About Gates Industrial Corp Stock

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Across the recent three months, 8 analysts have shared their insights on Gates Industrial Corp GTES, expressing a variety of opinions spanning from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 5 2 0 0
Last 30D 0 1 0 0 0
1M Ago 0 1 1 0 0
2M Ago 1 2 0 0 0
3M Ago 0 1 1 0 0

Insights from analysts' 12-month price targets are revealed, presenting an average target of $25.5, a high estimate of $27.00, and a low estimate of $23.00. Surpassing the previous average price target of $24.00, the current average has increased by 6.25%.

price target chart

Diving into Analyst Ratings: An In-Depth Exploration

In examining recent analyst actions, we gain insights into how financial experts perceive Gates Industrial Corp. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Julian Mitchell Barclays Lowers Overweight $26.00 $27.00
David Raso Evercore ISI Group Raises In-Line $23.00 $22.00
Julian Mitchell Barclays Raises Overweight $27.00 $25.00
Deane Dray RBC Capital Raises Outperform $27.00 $25.00
Jeffrey Hammond Keybanc Raises Overweight $27.00 $23.00
Andrew Kaplowitz Citigroup Lowers Buy $24.00 $27.00
Deane Dray RBC Capital Raises Outperform $26.00 $22.00
Jerry Revich Goldman Sachs Raises Neutral $24.00 $21.00

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 Gates Industrial Corp. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Gates Industrial Corp compared to the broader market.
  • Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Gates Industrial Corp's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Gates Industrial Corp's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Gates Industrial Corp analyst ratings.

Discovering Gates Industrial Corp: A Closer Look

Gates Industrial Corp PLC is a manufacturer of engineered power transmission and fluid power solutions. The company has two operating segments; Power Transmission and Fluid Power segments. The Power Transmission solutions convey power and control motion. It is used in applications in which belts, chains, cables, geared transmissions, or direct drives transfer power from an engine or motor to another part or system. The Fluid power solutions are used in applications in which hoses and rigid tubing assemblies either transfer power hydraulically or convey fluids, gases, or granular materials from one location to another. The company generates key revenue from the Power Transmission segment. Company operates in USA, United Kingdom, Luxembourg, EMEA, with majority revenue from USA.

Breaking Down Gates Industrial Corp's Financial Performance

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Challenges: Gates Industrial Corp's revenue growth over 3 months faced difficulties. As of 31 December, 2024, the company experienced a decline of approximately -3.93%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 4.41%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Gates Industrial Corp's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.19%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.53%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Gates Industrial Corp's debt-to-equity ratio surpasses industry norms, standing at 0.82. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

The Basics of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

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.

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

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GTESGates Industrial Corp PLC
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