Royal Bank Of Canada Reiterates “Buy” Rating for Regal Beloit (RBC)
Royal Bank Of Canada reiterated their buy rating on shares of Regal Beloit (NYSE:RBC) in a report issued on Tuesday morning. Royal Bank Of Canada currently has a $90.00 price objective on the industrial products company’s stock.
“RBC shares continue to offer strong/stable FCF yield, but with sentiment anchored by lagging C&I OM performance. RBC appears on track for about 10% adjusted EPS growth this year on ~8% EBIT growth, and trades at 13.8x ’17E FCF/share and 12.2x ’18E FCF/share. We view sustainable average FCF/NI conversion about 112-115%, and RBC currently trades at 25-30% FCF yield discount vs. our coverage. Lagging 2017 C&I OM reflects 1H ramp inefficiencies (pivot to growth against significant scope of facility consolidation activities) followed by adverse price/cost in 3Q (expected peak timing mismatch, with improved 4Q price realization; improved 4Q mix due to O&G product), but still projects ~+50 bps ’17E, with favorable 2018 comparison setup.”,” the firm’s analyst wrote.
RBC has been the subject of a number of other research reports. Morgan Stanley increased their price target on shares of Regal Beloit from $82.00 to $87.00 and gave the company an equal weight rating in a report on Monday, October 2nd. Zacks Investment Research downgraded shares of Regal Beloit from a buy rating to a hold rating in a report on Thursday, August 10th. BMO Capital Markets dropped their target price on shares of Regal Beloit from $88.00 to $85.00 and set a market perform rating for the company in a report on Tuesday, November 7th. ValuEngine downgraded shares of Regal Beloit from a buy rating to a hold rating in a report on Wednesday, November 15th. Finally, Robert W. Baird restated a buy rating and set a $88.00 target price on shares of Regal Beloit in a report on Wednesday, October 4th. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating and five have issued a buy rating to the stock. Regal Beloit has a consensus rating of Hold and an average price target of $86.63.
Regal Beloit (NYSE:RBC) last announced its quarterly earnings results on Monday, November 6th. The industrial products company reported $1.37 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $1.38 by ($0.01). The company had revenue of $857.00 million during the quarter, compared to analysts’ expectations of $837.19 million. Regal Beloit had a net margin of 6.28% and a return on equity of 9.76%. The business’s revenue for the quarter was up 5.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.31 EPS. analysts forecast that Regal Beloit will post 4.88 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Friday, January 12th. Shareholders of record on Friday, December 29th will be issued a dividend of $0.26 per share. The ex-dividend date of this dividend is Thursday, December 28th. This represents a $1.04 annualized dividend and a yield of 1.36%. Regal Beloit’s dividend payout ratio (DPR) is currently 22.61%.
Large investors have recently bought and sold shares of the business. Teacher Retirement System of Texas boosted its stake in shares of Regal Beloit by 1.1% during the 2nd quarter. Teacher Retirement System of Texas now owns 3,570 shares of the industrial products company’s stock worth $291,000 after purchasing an additional 39 shares during the last quarter. Synovus Financial Corp boosted its stake in shares of Regal Beloit by 4.4% during the 2nd quarter. Synovus Financial Corp now owns 2,607 shares of the industrial products company’s stock worth $209,000 after purchasing an additional 110 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank boosted its stake in shares of Regal Beloit by 1.6% during the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 8,704 shares of the industrial products company’s stock worth $710,000 after purchasing an additional 139 shares during the last quarter. Ameritas Investment Partners Inc. boosted its stake in shares of Regal Beloit by 1.6% during the 2nd quarter. Ameritas Investment Partners Inc. now owns 13,409 shares of the industrial products company’s stock worth $1,094,000 after purchasing an additional 206 shares during the last quarter. Finally, Texas Permanent School Fund boosted its stake in shares of Regal Beloit by 0.9% during the 2nd quarter. Texas Permanent School Fund now owns 32,715 shares of the industrial products company’s stock worth $2,668,000 after purchasing an additional 287 shares during the last quarter. Hedge funds and other institutional investors own 93.84% of the company’s stock.
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Regal Beloit Company Profile
Regal Beloit Corporation is a manufacturer of electric motors, electrical motion controls, power generation and power transmission products. The Company operates through three segments: the Commercial and Industrial Systems segment, with its principal line of business in medium and large electric motors, power generation products, high-performance drives and controls and capacitors; the Climate Solutions segment, with its principal line of business in small motors, controls and air moving products, and the Power Transmission Solutions segment, with its principal line of business in power transmission gearing, hydraulic pump drives, open gearing and specialty mechanical products which control motion and torque.
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