Gates Industrial (NYSE:GTES) Given New $37.00 Price Target at Robert W. Baird

Key Points

• Robert W. Baird cut its price target on Gates Industrial from $39 to $37 but kept an "outperform" rating, implying roughly a 53.5% upside from the current price.
• Gates beat quarterly EPS at $0.35 versus $0.32 expected while revenue of $851.1M slightly missed estimates; the company set FY2026 guidance of 1.52–1.68 EPS (sell‑side consensus 1.53).
• Analyst views are mixed but the MarketBeat consensus is a "Moderate Buy" with a $30.18 target, and institutional ownership is very high (~98.5%) as major funds have been increasing positions.

Gates Industrial (NYSE:GTES - Get Free Report) had its price objective reduced by research analysts at Robert W. Baird from $39.00 to $37.00 in a research report issued to clients and investors on Monday,Benzinga reports. The firm presently has an "outperform" rating on the stock. Robert W. Baird's price target indicates a potential upside of 53.53% from the stock's current price.

A number of other research analysts also recently issued reports on GTES. Weiss Ratings downgraded Gates Industrial from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, April 1st. Citigroup boosted their price target on Gates Industrial from $27.00 to $33.00 and gave the company a "buy" rating in a report on Friday, February 13th. Wall Street Zen raised Gates Industrial from a "buy" rating to a "strong-buy" rating in a report on Saturday. Morgan Stanley boosted their price target on Gates Industrial from $25.00 to $27.00 and gave the company an "equal weight" rating in a report on Wednesday, March 11th. Finally, Barclays decreased their price target on Gates Industrial from $32.00 to $28.00 and set an "overweight" rating for the company in a report on Wednesday, April 1st. Seven research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $30.18.

Gates Industrial Trading Up 0.2%

Gates Industrial stock opened at $24.10 on Monday. The company has a quick ratio of 2.66, a current ratio of 3.67 and a debt-to-equity ratio of 0.61. Gates Industrial has a 52 week low of $19.26 and a 52 week high of $28.47. The company has a market capitalization of $6.14 billion, a price-to-earnings ratio of 25.10 and a beta of 1.28. The stock has a 50-day moving average price of $24.57 and a 200 day moving average price of $23.73.

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

Institutional Trading of Gates Industrial

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. increased its position in shares of Gates Industrial by 5.0% in the third quarter. Vanguard Group Inc. now owns 26,753,365 shares of the company's stock valued at $664,019,000 after buying an additional 1,281,339 shares in the last quarter. Allspring Global Investments Holdings LLC increased its position in shares of Gates Industrial by 5.3% in the fourth quarter. Allspring Global Investments Holdings LLC now owns 14,169,457 shares of the company's stock valued at $312,578,000 after buying an additional 717,353 shares in the last quarter. Dimensional Fund Advisors LP increased its position in shares of Gates Industrial by 3.7% in the fourth quarter. Dimensional Fund Advisors LP now owns 11,250,875 shares of the company's stock valued at $241,562,000 after buying an additional 400,359 shares in the last quarter. JPMorgan Chase & Co. increased its position in shares of Gates Industrial by 98.7% in the fourth quarter. JPMorgan Chase & Co. now owns 8,373,294 shares of the company's stock valued at $179,775,000 after buying an additional 4,158,341 shares in the last quarter. Finally, Invesco Ltd. increased its position in shares of Gates Industrial by 5.9% in the fourth quarter. Invesco Ltd. now owns 8,322,654 shares of the company's stock valued at $178,687,000 after buying an additional 461,160 shares in the last quarter. 98.50% of the stock is currently 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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