Barclays Forecasts Strong Price Appreciation for Gates Industrial (NYSE:GTES) Stock

Key Points

• Barclays has raised its price target for Gates Industrial (NYSE:GTES) from $26.00 to $28.00, indicating a potential upside of 13.57% from the current trading price.
• Goldman Sachs, Royal Bank of Canada, and UBS Group have also adjusted their price targets for Gates Industrial, with the stock receiving a consensus rating of "Moderate Buy" and a target price of $26.67.
• Gates Industrial reported earnings of $0.39 per share, exceeding estimates, with revenue of $883.70 million for the quarter, although it showed a year-over-year decline of 0.2%.

Gates Industrial (NYSE:GTES - Get Free Report) had its price target raised by Barclays from $26.00 to $28.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Barclays's target price points to a potential upside of 13.57% from the company's current price.

Several other brokerages have also recently issued reports on GTES. The Goldman Sachs Group upped their target price on shares of Gates Industrial from $20.00 to $23.00 and gave the company a "neutral" rating in a report on Tuesday, May 27th. Royal Bank Of Canada upped their price objective on shares of Gates Industrial from $28.00 to $29.00 and gave the company an "outperform" rating in a research note on Thursday. Wall Street Zen raised Gates Industrial from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 12th. UBS Group increased their price objective on Gates Industrial from $27.00 to $30.00 and gave the company a "buy" rating in a report on Thursday. Finally, Morgan Stanley cut their target price on shares of Gates Industrial from $24.00 to $22.00 and set an "equal weight" rating on the stock in a report on Thursday, May 1st. Three equities research analysts have rated the stock with a hold rating, six have assigned a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $26.67.

Gates Industrial Trading Up 1.3%

GTES traded up $0.31 on Monday, hitting $24.65. The company had a trading volume of 757,917 shares, compared to its average volume of 2,323,101. The company's fifty day moving average price is $23.16 and its 200 day moving average price is $21.04. Gates Industrial has a 1 year low of $14.70 and a 1 year high of $25.66. The company has a current ratio of 3.46, a quick ratio of 2.46 and a debt-to-equity ratio of 0.66. The firm has a market cap of $6.35 billion, a P/E ratio of 31.56 and a beta of 1.24.

Gates Industrial (NYSE:GTES - Get Free Report) last announced its earnings results on Wednesday, July 30th. The company reported $0.39 earnings per share for the quarter, topping the consensus estimate of $0.38 by $0.01. The firm had revenue of $883.70 million for the quarter, compared to the consensus estimate of $873.34 million. Gates Industrial had a net margin of 5.98% and a return on equity of 10.17%. The firm's revenue for the quarter was down .2% on a year-over-year basis. During the same period in the prior year, the firm earned $0.36 EPS. As a group, equities analysts expect that Gates Industrial will post 1.36 earnings per share for the current year.

Institutional Trading of Gates Industrial

A number of hedge funds have recently bought and sold shares of the company. Keybank National Association OH raised its position in Gates Industrial by 7.2% during the second quarter. Keybank National Association OH now owns 36,748 shares of the company's stock valued at $846,000 after acquiring an additional 2,481 shares in the last quarter. Hantz Financial Services Inc. boosted its position in Gates Industrial by 7.4% during the second quarter. Hantz Financial Services Inc. now owns 99,526 shares of the company's stock worth $2,292,000 after purchasing an additional 6,848 shares during the period. Envestnet Asset Management Inc. grew its holdings in Gates Industrial by 2.0% during the second quarter. Envestnet Asset Management Inc. now owns 1,133,515 shares of the company's stock valued at $26,105,000 after purchasing an additional 22,586 shares during the last quarter. Oppenheimer Asset Management Inc. grew its stake in Gates Industrial by 2.4% in the 2nd quarter. Oppenheimer Asset Management Inc. now owns 80,223 shares of the company's stock valued at $1,848,000 after buying an additional 1,853 shares during the last quarter. Finally, Focus Partners Advisor Solutions LLC acquired a new position in Gates Industrial during the 2nd quarter worth $219,000. 98.50% of the stock is owned by hedge funds and other institutional investors.

About Gates Industrial

Gates Industrial Corporation PLC designs and manufactures power transmission equipment. Its products serves harsh and hazardous industries such as agriculture, construction, manufacturing and energy, to everyday consumer applications such as printers, power washers, automatic doors and vacuum cleaners and virtually every form of transportation.

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