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Goldman Sachs lowered its price target for Regal Rexnord to $216, down from $240. This move follows a period where the stock has faced pressure, though the new target still sits well above the current price of about $167. While the firm lowered its specific price estimate, the average target across all analysts remains higher at $251. For long-term owners, this is a routine adjustment to expectations rather than a change in the firm's overall rating of the business.
Source: Goldman Sachs
KeyBanc lowered its price target from $265 to $240. This is the price an analyst thinks the stock is worth. The firm kept its overweight rating, which means they still expect the stock to perform better than the average company.
Even with the lower target, the firm's estimate is still well above where the stock currently trades. This suggests they still see plenty of room for the stock to rise as the company shifts its focus toward higher-margin products like data center cooling systems.
Source: KeyBanc
The company reported adjusted earnings of $2.99 per share, which was better than the $2.58 analysts expected. This profit number was helped by a $32 million refund on tariffs, which are taxes paid on imported goods. Revenue came in at $1.56 billion, slightly below the $1.58 billion target.
What matters most for the long term is that daily orders rose nearly 9 percent. This shows strong demand for the company's motors and automation parts. Management also expects to finish the year with less debt, which is a key goal as they move away from slower industrial businesses to focus on high-growth areas like cooling systems for AI data centers.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
The board of directors approved a dividend of $0.35 per share. A dividend is a portion of a company's profit paid out to the people who own its stock. This payment will be made on October 14 to anyone who owns the stock as of September 30. Maintaining the dividend shows the company is confident in its ability to generate steady cash while it works through its plan to pay down debt and invest in new technology.
Source: PRNewsWire
Deutsche Bank set a price target of $286 for the stock. This is the price an analyst believes the stock should reach within the next year. This target is much higher than the current stock price.
An optimistic target like this usually reflects a belief that the company's shift into high-tech markets, like cooling for data centers and robotics, will lead to higher profits than the market currently expects.
Source: Deutsche Bank
Management has built a reliable habit of clearing their own targets. Recent results show the business is outrunning forecasts as it shifts toward higher-margin automation and cooling parts.
| Expectation | |
|---|---|
| EPS | $2.65 |
| Revenue | $1.56B |
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