Gates Industrial (NYSE:GTES) Earns Neutral Rating from Analysts at DA Davidson

Key Points

• DA Davidson initiated coverage of Gates Industrial with a “neutral” rating and a $29 price target, implying approximately 13.5% upside from the stock’s $25.56 opening price.
• Analyst sentiment remains broadly positive: nine analysts rate the stock a Buy and four rate it a Hold, resulting in a “Moderate Buy” consensus and an average price target of $32.45.
• Gates Industrial exceeded quarterly expectations, reporting $0.44 EPS versus the $0.42 estimate and $941.6 million in revenue, up 6.6% year over year; the company issued fiscal 2026 EPS guidance of $1.62–$1.70.

Research analysts at DA Davidson assumed coverage on shares of Gates Industrial (NYSE:GTES - Get Free Report) in a report issued on Tuesday, Benzinga reports. The firm set a "neutral" rating and a $29.00 price target on the stock. DA Davidson's price objective would indicate a potential upside of 13.46% from the company's current price.

A number of other analysts have also commented on the company. Robert W. Baird boosted their target price on Gates Industrial from $37.00 to $39.00 and gave the company an "outperform" rating in a research report on Monday, August 3rd. JPMorgan Chase & Co. raised their price target on shares of Gates Industrial from $32.00 to $34.00 and gave the company an "overweight" rating in a research report on Monday, August 3rd. Wolfe Research reissued an "outperform" rating and set a $33.00 price objective on shares of Gates Industrial in a report on Thursday, July 9th. Citigroup raised their target price on Gates Industrial from $33.00 to $35.00 and gave the company a "buy" rating in a report on Monday, August 3rd. Finally, Wells Fargo & Company raised their price objective on Gates Industrial from $26.00 to $30.00 and gave the company an "equal weight" rating in a research note on Monday, August 3rd. Nine analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $32.45.

Gates Industrial Trading Down 1.2%

Shares of GTES opened at $25.56 on Tuesday. Gates Industrial has a 52-week low of $20.88 and a 52-week high of $30.34. The company has a debt-to-equity ratio of 0.58, a quick ratio of 2.36 and a current ratio of 3.24. The business's fifty day moving average is $27.09 and its 200-day moving average is $25.93. The firm has a market cap of $6.47 billion, a price-to-earnings ratio of 18.13 and a beta of 1.25.

Gates Industrial (NYSE:GTES - Get Free Report) last issued its earnings results on Friday, July 31st. The company reported $0.44 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.42 by $0.02. Gates Industrial had a return on equity of 10.11% and a net margin of 10.37%.The business had revenue of $941.60 million during the quarter, compared to analysts' expectations of $927.28 million. During the same quarter in the prior year, the firm earned $0.39 EPS. The business's revenue for the quarter was up 6.6% compared to the same quarter last year. Gates Industrial has set its FY 2026 guidance at 1.620-1.700 EPS. Equities analysts anticipate that Gates Industrial will post 1.55 EPS for the current fiscal year.

Insider Buying and Selling at Gates Industrial

In related news, Director Peifang Zhang sold 6,000 shares of the firm's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $29.56, for a total value of $177,360.00. Following the completion of the sale, the director owned 44,044 shares of the company's stock, valued at $1,301,940.64. This trade represents a 11.99% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Corporate insiders own 2.80% of the company's stock.

Institutional Trading of Gates Industrial

A number of hedge funds and other institutional investors have recently modified their holdings of GTES. New York State Teachers Retirement System boosted its stake in Gates Industrial by 0.6% during the fourth quarter. New York State Teachers Retirement System now owns 85,748 shares of the company's stock worth $1,841,000 after acquiring an additional 479 shares in the last quarter. Xponance LLC increased its stake in shares of Gates Industrial by 3.7% during the fourth quarter. Xponance LLC now owns 13,792 shares of the company's stock valued at $296,000 after purchasing an additional 486 shares in the last quarter. Fifth Third Bancorp lifted its holdings in shares of Gates Industrial by 46.3% during the first quarter. Fifth Third Bancorp now owns 1,624 shares of the company's stock valued at $37,000 after purchasing an additional 514 shares during the last quarter. Glenmede Investment Management LP lifted its holdings in shares of Gates Industrial by 0.9% during the third quarter. Glenmede Investment Management LP now owns 55,047 shares of the company's stock valued at $1,366,000 after purchasing an additional 514 shares during the last quarter. Finally, Lido Advisors LLC boosted its position in shares of Gates Industrial by 3.8% in the 4th quarter. Lido Advisors LLC now owns 14,069 shares of the company's stock worth $302,000 after purchasing an additional 521 shares in the last quarter. 98.50% of the stock is owned by hedge funds and other institutional investors.

About Gates Industrial

Gates Industrial Corporation PLC NYSE: GTES is a leading global manufacturer of engineered power transmission belts and fluid power products. The company's portfolio includes synchronous belts, V-belts, hose assemblies, fittings and hydraulic components designed to support a wide range of industrial and automotive applications. Gates Industrial serves sectors such as agriculture, mining, construction, manufacturing, transportation and consumer markets, offering solutions that improve performance, reliability and efficiency in demanding operating environments.

In its power transmission segment, Gates Industrial produces high-strength belts engineered for precise motion control and minimal maintenance.

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