Regal Rexnord's Long-Term Trajectory Triggers 11% Price Target Boost By This Analyst

KeyBanc analyst Jeffrey D. Hammond raised the price target for Regal Rexnord Corp RRX to $172 (an upside of 19%) from $155 while maintaining the Overweight rating on the shares.
The analyst views the recent benefits from the apparent organic and inorganic improvements to RRX's portfolio as a structural change to the growth/margin profile of the business.
The analyst believes that RRX will highlight a path to attractive margin targets (likely high-30s% GM) given the increasing systems sales and synergy progress.
Hammond believes the company highlighting/quantifying its more attractive growth/margin trajectory and upside to PMC/Arrowhead synergies at its upcoming analyst day (September 13, 2022) will serve as an incremental NT catalyst.
Price Action: RRX shares are trading higher by 0.80% at $145.08 on the last check Tuesday.