Goldman Sachs Reiterates Buy Rating on Regal Rexnord Corp (RRX)

Goldman Sachs analyst Joe Ritchie reiterated a Buy rating and $192.00 price target on Regal Rexnord Corp (NYSE: RRX)

The analyst comments "RRX posted adj. EBITDA of $329.7mn which was -1% vs. Visible Alpha Consensus Data driven by better EBITDA in PES/IPS offset by weakness in AMC. In AMC, the company called out temporary mix related margin pressure primarily due to availability of rare earth magnets uses in the medical & defense sectors. Daily orders were down -2.5% in 2Q despite management referencing strong orders in IPS/AMC. For AMC, orders in July were +21.5% on the back of multiple data center wins. Going forward, RRX narrowed its FY25 EPS guide to $9.70-$10.30 (from $9.60-$10.40 vs. cons $9.93) and we expect the focal point to be orders given management +MSD expectations for 2H as well as a 4Q weighted guide. As such, we tweak our FY25 EPS estimate to $10.00 (prior $10.05) and maintain FY26/FY27 estimates at $11.20/$12.35 (vs cons $11.42/$12.08). We remain Buy rated and our $192 price target implies a ~7.0% FY27 FCF yield."

For an analyst ratings summary and ratings history on Regal Rexnord Corp click here. For more ratings news on Regal Rexnord Corp click here.

Shares of Regal Rexnord Corp closed at $148.22 yesterday.

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