Gates Industrial (NYSE:GTES) Downgraded by Wall Street Zen to "Buy"

Key Points

• Wall Street Zen downgraded Gates Industrial from "strong-buy" to "buy", while the analyst consensus remains a Moderate Buy with an average target price of $30.36 and mixed price-target moves from major brokers.
• Quarterly results slightly beat expectations (EPS $0.38 vs. $0.37; revenue $856.2M, up 3.2% YoY) and the company set FY2026 guidance of $1.520–1.680 EPS (analysts expect ~1.36 for the current year).
• The stock trades around $25.55 (52‑week range $16.27–$28.47) with a market cap of $6.49B and a P/E of 26.3, and is heavily held by institutions (about 98.5% ownership).

Gates Industrial (NYSE:GTES - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a note issued to investors on Saturday.

GTES has been the subject of a number of other research reports. Barclays decreased their price objective on Gates Industrial from $32.00 to $28.00 and set an "overweight" rating for the company in a report on Wednesday, April 1st. Morgan Stanley increased their price objective on Gates Industrial from $25.00 to $27.00 and gave the stock an "equal weight" rating in a report on Wednesday, March 11th. Robert W. Baird set a $39.00 price objective on Gates Industrial in a report on Friday, February 13th. UBS Group reiterated a "buy" rating and issued a $33.00 price objective on shares of Gates Industrial in a report on Friday, February 13th. Finally, Citigroup increased their price objective on Gates Industrial from $27.00 to $33.00 and gave the stock a "buy" rating in a report on Friday, February 13th. Six research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, Gates Industrial presently has a consensus rating of "Moderate Buy" and an average target price of $30.36.

Gates Industrial Stock Performance

Shares of GTES stock opened at $25.55 on Friday. The stock has a fifty day moving average of $24.91 and a 200 day moving average of $23.74. Gates Industrial has a 52 week low of $16.27 and a 52 week high of $28.47. The firm has a market capitalization of $6.49 billion, a price-to-earnings ratio of 26.34 and a beta of 1.28. The company has a quick ratio of 2.42, a current ratio of 3.37 and a debt-to-equity ratio of 0.61.

Gates Industrial (NYSE:GTES - Get Free Report) last announced its quarterly earnings results on Thursday, February 12th. The company reported $0.38 EPS for the quarter, topping analysts' consensus estimates of $0.37 by $0.01. Gates Industrial had a return on equity of 10.36% and a net margin of 7.30%.The company had revenue of $856.20 million during the quarter, compared to analyst estimates of $853.35 million. During the same quarter last year, the firm posted $0.36 earnings per share. The firm's revenue was up 3.2% on a year-over-year basis. Gates Industrial has set its FY 2026 guidance at 1.520-1.680 EPS. As a group, research analysts expect that Gates Industrial will post 1.36 earnings per share for the current year.

Hedge Funds Weigh In On Gates Industrial

Several institutional investors and hedge funds have recently modified their holdings of GTES. Empowered Funds LLC bought a new position in shares of Gates Industrial during the first quarter valued at $381,000. Creative Planning increased its holdings in shares of Gates Industrial by 53.9% during the second quarter. Creative Planning now owns 15,435 shares of the company's stock valued at $355,000 after acquiring an additional 5,404 shares in the last quarter. Prudential Financial Inc. increased its holdings in shares of Gates Industrial by 52.7% during the second quarter. Prudential Financial Inc. now owns 17,940 shares of the company's stock valued at $389,000 after acquiring an additional 6,190 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Gates Industrial by 273.2% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,911 shares of the company's stock valued at $67,000 after acquiring an additional 2,131 shares in the last quarter. Finally, M&T Bank Corp increased its holdings in shares of Gates Industrial by 8.6% during the second quarter. M&T Bank Corp now owns 11,801 shares of the company's stock valued at $272,000 after acquiring an additional 937 shares in the last quarter. 98.50% of the stock is currently owned by 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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