Update shared on27 Aug 2025
Fair value Increased 1.59%Analysts have modestly raised Gates Industrial’s price target to $30.27, citing the company’s successful transformation toward higher-growth markets, effective management execution, and margin expansion potential amidst sector tailwinds.
Analyst Commentary
- Bullish analysts believe Gates Industrial is successfully transforming from a traditional industrial supplier to a growth compounder by leveraging structural trends in mobility and data center infrastructure.
- Strong execution and margin improvement, even amid choppy or uncertain end market demand, indicate management’s effective control over internal operations.
- Encouraging progress on innovation, market share gains, and outperformance versus end markets are cited as drivers for longer-term growth and margin expansion.
- Upward bias to earnings estimates and the likelihood of further multiple expansion are noted as positive sector tailwinds supporting the stock’s re-rating potential.
- Industrywide expectations of solid quarterly results and improved earnings outlook, with analysts taking a favorable view on Gates’ ability to meet or exceed its stated margin targets through 2026.
What's in the News
- Issued third quarter earnings guidance with estimated total revenues of $845 million to $885 million and core revenues up approximately 3% at the midpoint.
- Updated full year 2025 core revenue growth expectation to 0.5% to 2.5%, maintaining a midpoint of 1.5%.
- Reported no share repurchases from March 30 to June 28, but completed a total buyback of 8,212,114 shares (3.15%) for $137.93 million since the program's inception.
- Raised full year 2025 earnings guidance, now expecting core sales growth of 0.5% to 2.5% year-over-year.
Valuation Changes
Summary of Valuation Changes for Gates Industrial
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $29.80 to $30.27.
- The Future P/E for Gates Industrial has risen slightly from 25.70x to 26.29x.
- The Net Profit Margin for Gates Industrial remained effectively unchanged, moving only marginally from 10.38% to 10.29%.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.