Gates Industrial, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Andrew Kaplowitz from Citi maintained a Buy rating on the stock and has a $33.00 price target.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Andrew Kaplowitz has given his Buy rating due to a combination of factors that, in his view, position Gates Industrial for attractive upside over the next 90 days and beyond. He believes improving demand indicators in key short-cycle industrial markets, including an anticipated pickup in truck-related activity ahead of new EPA 2027 rules, should support stronger volumes, especially given the company’s significant exposure to resilient and growing end markets such as data centers and its substantial aftermarket mix.
He also expects Gates Industrial’s ongoing profitability initiatives to translate into strong incremental margins in late 2026 and early 2027, reinforcing confidence in double-digit EPS growth through 2027–2028. While he acknowledges near-term headwinds from fewer working days and an ERP transition that together weigh on first-quarter 2026 revenue, he views these as well understood and more than offset by operating leverage and flexible capital deployment, which underpin both his 2026 EPS estimate and his positive risk‑reward assessment.
According to TipRanks, Kaplowitz is a top 100 analyst with an average return of 22.1% and a 64.39% success rate. Kaplowitz covers the Industrials sector, focusing on stocks such as Eaton, MasTec, and Parker Hannifin.
In another report released on April 7, RBC Capital also maintained a Buy rating on the stock with a $30.00 price target.