DA Davidson Starts Gates Industrial Corp. (GTES) at Neutral

DA Davidson analyst Chris Dankert initiates coverage on Gates Industrial Corp. (NYSE: GTES) with a Neutral rating and a price target of $29.00.

The analyst comments "We are initiating coverage of Gates Corp., GTES with a ‘NEUTRAL’ rating and $29 PT, which reflects 10.0x our CY27 adj. EBITDA forecast of $887M (5-yr. median 8.7x). As indicated by our PT, we are initiating coverage with a positive bias given material leverage to the industrial upcycle, lower debt and solid FCF support capital deployment that has not been a major factor previously, and personal mobility should add ~100bp to organic growth annually over the next several years. Ongoing softness in OEM auto/ag. remains a drag near-term, while the ICE to EV transition also presents a headwind."

For an analyst ratings summary and ratings history on Gates Industrial Corp. click here. For more ratings news on Gates Industrial Corp. click here.

Shares of Gates Industrial Corp. closed at $25.87 yesterday.

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