Gates Industrial price target raised to $26 from $23 at KeyBanc

KeyBanc analyst Jeffrey Hammond raised the firm’s price target on Gates Industrial (GTES) to $26 from $23 and keeps an Overweight rating on the shares after spending time with the company’s CEO Ivo Jurek and meeting with investors. While demand trends remain choppy, the firm is encouraged by Gates’ ability to manage what is within its control, driving margin improvement without volume tailwinds, and outgrowing end markets through innovation and share gains. KeyBanc has increased confidence the company will be able to hit stated margin targets exiting 2026 even without end market recovery. Between proving out margin traction and the ability to outgrow its markets, it still sees room for multiple expansion from current levels.