Seaport Global Securities Downgrades Regal Beloit (RBC) to Neutral

Seaport Global Securities downgraded Regal Beloit (NYSE: RBC) from Accumulate to Neutral with a price target of $64.00 (from $68.00).

Analyst Walt Liptak commented, "We recently caught up with RBC management. Overall, we believe that the 2016 outlook remains uncertain due to negative sector exposure, especially O&G, both direct and indirect. We believe that the general industrial sector remains weak, and could be a negative headwind for short-term earnings. As a result, we are lowering our rating to Neutral from Accumulate and lowering our price target to $64 from $68. We are lowering our 2016 and 2017 EPS estimates as a result of persistently weak industrial markets. Our new 2016 and 2017 EPS estimates are $4.35 (from $4.37 previously) and $4.70 (from $4.71), respectively. RBC's valuation is below our SGS Electrical Products Group. Our new $64 price target equates to a 2017E P/E of 13.6x, which is in line with the comparable group average multiple."

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

Shares of Regal Beloit closed at $58.18 yesterday.

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