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

Key Points

• Wall Street Zen downgraded Gates Industrial from “strong-buy” to “buy”, adding to a mixed analyst picture on the stock.
• Other firms remain split on GTES: Barclays cut its price target to $28, while Citigroup raised its target to $33; overall, analysts rate the stock a Moderate Buy with a consensus target of $30.18.
• Gates Industrial reported Q1 EPS of $0.35, beating estimates, though revenue of $851.1 million slightly missed expectations; the company also guided FY2026 EPS at $1.52-$1.68.

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

Several other equities analysts have also commented on GTES. Barclays lowered their price target on shares of Gates Industrial from $32.00 to $28.00 and set an "overweight" rating for the company in a research report on Wednesday, April 1st. Citigroup boosted their target price on shares of Gates Industrial from $27.00 to $33.00 and gave the company a "buy" rating in a research note on Friday, February 13th. Royal Bank Of Canada restated an "outperform" rating and issued a $31.00 target price on shares of Gates Industrial in a research report on Friday, February 13th. Weiss Ratings lowered shares of Gates Industrial from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, April 1st. Finally, Morgan Stanley boosted their price objective on Gates Industrial from $25.00 to $27.00 and gave the stock an "equal weight" rating in a research report on Wednesday, March 11th. Seven equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $30.18.

Gates Industrial Price Performance

Gates Industrial stock opened at $26.09 on Friday. The company has a debt-to-equity ratio of 0.61, a current ratio of 3.67 and a quick ratio of 2.66. The stock has a market capitalization of $6.62 billion, a P/E ratio of 27.18 and a beta of 1.28. Gates Industrial has a 12-month low of $20.39 and a 12-month high of $28.47. The firm's 50-day moving average is $24.44 and its two-hundred day moving average is $23.73.

Gates Industrial (NYSE:GTES - Get Free Report) last released its quarterly earnings data on Friday, May 1st. The company reported $0.35 earnings per share for the quarter, topping the consensus estimate of $0.32 by $0.03. Gates Industrial had a net margin of 7.23% and a return on equity of 10.00%. The firm had revenue of $851.10 million for the quarter, compared to analyst estimates of $859.72 million. During the same quarter in the prior year, the business earned $0.36 earnings per share. Gates Industrial's quarterly revenue was up .4% on a year-over-year basis. Gates Industrial has set its FY 2026 guidance at 1.520-1.680 EPS. Equities analysts predict that Gates Industrial will post 1.53 earnings per share for the current year.

Hedge Funds Weigh In On Gates Industrial

Several large investors have recently bought and sold shares of the stock. New York State Teachers Retirement System lifted its stake in shares of Gates Industrial by 0.6% in the 4th 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 during the period. 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 acquiring an additional 486 shares during the period. Fifth Third Bancorp raised its holdings in Gates Industrial by 46.3% during the first quarter. Fifth Third Bancorp now owns 1,624 shares of the company's stock worth $37,000 after purchasing an additional 514 shares in the last quarter. Glenmede Investment Management LP lifted its position in Gates Industrial by 0.9% in the third quarter. Glenmede Investment Management LP now owns 55,047 shares of the company's stock worth $1,366,000 after purchasing an additional 514 shares during the period. Finally, Lido Advisors LLC lifted its position in Gates Industrial by 3.8% in the fourth quarter. Lido Advisors LLC now owns 14,069 shares of the company's stock worth $302,000 after purchasing an additional 521 shares during the period. Institutional investors and hedge funds own 98.50% of the company's stock.

Gates Industrial Company Profile

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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