Update shared on 14 Nov 2025
Fair value Decreased 1.25%The analyst price target for Gates Industrial has been modestly reduced to $28.82 from $29.18. Analysts cite slower projected revenue growth and a higher discount rate, despite signs of improving profitability.
Analyst Commentary
Recent coverage of Gates Industrial has presented a mix of optimism about the company’s strategic direction and caution regarding its growth prospects. Analysts have provided updated ratings and price targets reflecting evolving expectations for the business and sector landscape.
Bullish Takeaways- Bullish analysts highlight Gates Industrial's evolution from a traditional industrial supplier to a growth compounder, as the company leverages opportunities in mobility and data center infrastructure.
- Confidence remains in the company's ability to convert its legacy expertise in engineered power transmission into a more resilient and diversified growth platform.
- Upward adjustments to earnings estimates suggest further multiple expansion potential. This indicates that Gates may outperform within the industrials sector.
- Some analysts express caution about the company’s slow revenue growth outlook, which is contributing to reduced price targets.
- Concerns persist regarding the broader machinery and engineering services environment, with some preferring alternatives in the sector because of more favorable supply setups elsewhere.
- Equal Weight ratings suggest that while this is not a negative view, not all analysts see clear catalysts for outperforming peers in the near term.
What's in the News
- Gates Corporation has launched Data Master Eco, a next-generation liquid cooling solution for hyperscale data centers and high-performance computing. The solution aims to maximize uptime, reduce environmental impact, and support complex AI-operating environments (Key Developments).
- The Data Master Eco features halogen-free, energy-efficient manufacturing processes that reduce energy use by about 75 percent, eliminate natural gas, water, and steam, and cut carbon emissions at the source (Key Developments).
- Gates Industrial announced a $300 million share repurchase program, authorized by the Board of Directors and valid through December 2026 (Key Developments).
- The company has completed the repurchase of over 8.2 million shares, representing 3.15 percent, for $137.93 million as part of its ongoing buyback plans (Key Developments).
- Gates updated its 2025 earnings guidance, lowering the core revenue growth midpoint to 1 percent and narrowing its target range due to current macroeconomic conditions (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has declined, moving from $29.18 to $28.82.
- Discount Rate has risen slightly, increasing from 9.17 percent to 9.36 percent.
- Revenue Growth expectations have fallen notably, decreasing from 4.26 percent to 3.30 percent.
- Net Profit Margin has edged higher, improving from 8.62 percent to 8.86 percent.
- Future P/E Ratio has decreased marginally, shifting from 30.62x to 30.17x.
Disclaimer
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