Gates Industrial (NYSE:GTES) Upgraded to “Strong-Buy” at Wall Street Zen

Wall Street Zen upgraded shares of Gates Industrial (NYSE:GTES) from a buy rating to a strong-buy rating in a report released on Saturday morning.

Several other research analysts have also recently issued reports on the stock. Barclays increased their price objective on shares of Gates Industrial from $26.00 to $32.00 and gave the company an “overweight” rating in a report on Friday. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $31.00 price target on shares of Gates Industrial in a research note on Friday. Citigroup lifted their price target on Gates Industrial from $27.00 to $33.00 and gave the company a “buy” rating in a research report on Friday. UBS Group restated a “buy” rating and issued a $33.00 price objective on shares of Gates Industrial in a report on Friday. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Gates Industrial in a research report on Monday, December 29th. Six analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $29.67.

Gates Industrial Stock Up 1.8%

GTES opened at $28.04 on Friday. The stock’s 50 day moving average price is $23.09 and its 200 day moving average price is $23.84. The company has a debt-to-equity ratio of 0.61, a current ratio of 3.37 and a quick ratio of 2.50. The stock has a market cap of $7.24 billion, a P/E ratio of 28.90 and a beta of 1.27. Gates Industrial has a 12 month low of $14.70 and a 12 month high of $28.47.

Gates Industrial (NYSE:GTES) last announced its quarterly earnings results on Thursday, February 12th. The company reported $0.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.37 by $0.01. The company had revenue of $856.20 million during the quarter, compared to analyst estimates of $853.35 million. Gates Industrial had a return on equity of 10.36% and a net margin of 7.30%.The firm’s quarterly revenue was up 3.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.36 EPS. Gates Industrial has set its FY 2026 guidance at 1.520-1.680 EPS. As a group, research analysts predict that Gates Industrial will post 1.36 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. JPMorgan Chase & Co. lifted its position in Gates Industrial by 98.7% in the 4th quarter. JPMorgan Chase & Co. now owns 8,373,294 shares of the company’s stock worth $179,775,000 after buying an additional 4,158,341 shares in the last quarter. Norges Bank purchased a new position in shares of Gates Industrial during the 2nd quarter valued at $80,713,000. Van Berkom & Associates Inc. acquired a new position in shares of Gates Industrial in the fourth quarter worth $68,614,000. Adage Capital Partners GP L.L.C. purchased a new stake in shares of Gates Industrial during the second quarter worth $32,255,000. Finally, Vanguard Group Inc. raised its holdings in shares of Gates Industrial by 5.0% during the third quarter. Vanguard Group Inc. now owns 26,753,365 shares of the company’s stock worth $664,019,000 after acquiring an additional 1,281,339 shares in the last quarter. 98.50% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Gates Industrial

Here are the key news stories impacting Gates Industrial this week:

• Positive Sentiment: Q4 adjusted EPS beat estimates — Gates reported adjusted EPS of $0.38 vs. the $0.37 consensus, confirming modest improvement in profitability year-over-year. Read More.
• Positive Sentiment: Capital returns and cash generation — Management repurchased approximately $105 million of shares and generated $478.1 million of operating cash flow for 2025, supporting shareholder returns and balance-sheet flexibility. Read More.
• Neutral Sentiment: FY?2026 guidance essentially in line with consensus — Gates provided an EPS range of $1.520–$1.680 (consensus ~$1.56) and revenue guidance of $3.5B–$3.6B, leaving room for execution risk but not signaling a material reset. Read More.
• Neutral Sentiment: Revenue roughly in line with estimates but soft growth — Q4 sales were $856.2M (in line with estimates) and up just 3.2% YoY, reflecting limited core sales expansion. Read More.
• Negative Sentiment: Underlying demand and GAAP profitability show restraints — core sales growth was modest (0.6% in the quarter, 1.0% for FY), and GAAP net income per diluted share for the quarter was $0.20 versus adjusted $0.38, highlighting one?time items and ongoing margin sensitivity. Read More.
• Neutral Sentiment: Management provided supporting materials — earnings slide deck and conference-call materials are available for deeper detail on segment trends and the drivers behind guidance. Read More.

Gates Industrial Company Profile

Gates Industrial Corporation PLC (NYSE: GTES) is a leading global manufacturer of engineered power transmission belts and fluid power products. The company’s portfolio includes synchronous belts, V-belts, hose assemblies, fittings and hydraulic components designed to support a wide range of industrial and automotive applications. Gates Industrial serves sectors such as agriculture, mining, construction, manufacturing, transportation and consumer markets, offering solutions that improve performance, reliability and efficiency in demanding operating environments.

In its power transmission segment, Gates Industrial produces high-strength belts engineered for precise motion control and minimal maintenance.