Royal Bank Of Canada Forecasts Strong Price Appreciation for Gates Industrial (NYSE:GTES) Stock

Key Points

• Royal Bank of Canada raised Gates Industrial’s price target to $34 from $33 while maintaining an “outperform” rating, implying 18.84% upside from the previous close. Analysts overall rate the stock “Moderate Buy,” with a consensus target of $32.82.
• Gates Industrial shares rose 2.3% to $28.61, near the company’s 52-week high of $29.17. The stock has received support from several analysts, including upgraded targets from Wells Fargo, Robert W. Baird and KeyCorp.
• The company exceeded quarterly expectations, reporting $0.44 in EPS versus a $0.42 consensus estimate and revenue of $941.6 million versus $927.28 million expected. Revenue increased 6.6% year over year, while management issued fiscal 2026 EPS guidance of $1.62–$1.70.

Gates Industrial (NYSE:GTES - Get Free Report) had its price target boosted by Royal Bank Of Canada from $33.00 to $34.00 in a research note issued to investors on Monday,Benzinga reports. The firm presently has an "outperform" rating on the stock. Royal Bank Of Canada's target price suggests a potential upside of 18.84% from the company's previous close.

Several other equities analysts have also recently commented on GTES. Wells Fargo & Company raised their price target on shares of Gates Industrial from $26.00 to $30.00 and gave the company an "equal weight" rating in a research report on Monday. Morgan Stanley upped their price objective on Gates Industrial from $27.00 to $28.00 and gave the stock an "equal weight" rating in a research report on Friday, May 29th. Wolfe Research reiterated an "outperform" rating and issued a $33.00 price objective on shares of Gates Industrial in a research note on Thursday, July 9th. Robert W. Baird increased their price objective on Gates Industrial from $37.00 to $39.00 and gave the company an "outperform" rating in a research note on Monday. Finally, KeyCorp lifted their target price on Gates Industrial from $31.00 to $34.00 and gave the company an "overweight" rating in a report on Monday. Eight research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, Gates Industrial has a consensus rating of "Moderate Buy" and a consensus price target of $32.82.

Gates Industrial Trading Up 2.3%

Shares of GTES stock traded up $0.63 on Monday, hitting $28.61. The stock had a trading volume of 748,490 shares, compared to its average volume of 2,262,717. The company's 50 day moving average price is $26.70 and its 200-day moving average price is $25.40. Gates Industrial has a 1 year low of $20.88 and a 1 year high of $29.17. The company has a debt-to-equity ratio of 0.58, a current ratio of 3.24 and a quick ratio of 2.36. The firm has a market capitalization of $7.27 billion, a P/E ratio of 20.28 and a beta of 1.25.

Gates Industrial (NYSE:GTES - Get Free Report) last announced its earnings results on Friday, July 31st. The company reported $0.44 EPS for the quarter, beating analysts' consensus estimates of $0.42 by $0.02. The company had revenue of $941.60 million during the quarter, compared to analysts' expectations of $927.28 million. Gates Industrial had a return on equity of 10.11% and a net margin of 10.37%.Gates Industrial's revenue for the quarter was up 6.6% on a year-over-year basis. During the same period last year, the business posted $0.39 EPS. Gates Industrial has set its FY 2026 guidance at 1.620-1.700 EPS. Analysts anticipate that Gates Industrial will post 1.53 earnings per share for the current year.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Los Angeles Capital Management LLC purchased a new stake in Gates Industrial during the 4th quarter worth about $26,000. Transamerica Financial Advisors LLC increased its holdings in shares of Gates Industrial by 51.9% during the 4th quarter. Transamerica Financial Advisors LLC now owns 1,577 shares of the company's stock worth $34,000 after buying an additional 539 shares during the last quarter. Fifth Third Bancorp grew its position in 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 acquiring an additional 514 shares during the period. Parallel Advisors LLC grew its holdings in shares of Gates Industrial by 37.7% during the 1st quarter. Parallel Advisors LLC now owns 2,536 shares of the company's stock worth $57,000 after purchasing an additional 694 shares during the period. Finally, Northwestern Mutual Wealth Management Co. grew its stake in Gates Industrial by 273.2% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,911 shares of the company's stock worth $67,000 after buying an additional 2,131 shares during the period. 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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