KeyBanc Downgrades Regal Beloit (RBC) to Sector Weight

KeyBanc analyst Jeffrey Hammond downgraded Regal Beloit (NYSE: RBC) from Overweight to Sector Weight following recent share strength, driven in part by a Bloomberg report of a merger with RXN.

The analyst commented, "Our rationale is based on: 1) value creation via merger (beyond synergies) has been effectively priced in at current levels, implying NT downside should a deal fail to materialize; 2) company-specific risks, which come into focus as stocks/expectations rise; and 3) an evolving Value rotation, which is likely to shift away from early-cycle names, in favor of mid-cycle or deeper value assets. Together, these dynamics imply a lack of risk/reward upside, with shares of both RBC and RXN trading near all-time highs."

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 $137.45 yesterday.

You May Also Be Interested In

• Dollarama Inc. (DOL:CN) (DLMAF) PT Raised to Cdn$231 at Bernstein SocGen
• Oxford Industries (OXM) PT Lowered to $40 at UBS Amid Top-line Weakness
• Seneca Foods (SENEA) PT Raised to $202 at Freedom Broker