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

Gates Industrial (NYSE:GTES) was upgraded by equities researchers at Wall Street Zen from a “buy” rating to a “strong-buy” rating in a note issued to investors on Saturday.

A number of other equities analysts have also weighed in on GTES. Barclays boosted their price objective on shares of Gates Industrial from $26.00 to $32.00 and gave the company an “overweight” rating in a research report on Friday. JPMorgan Chase & Co. lowered their target price on shares of Gates Industrial from $33.00 to $32.00 and set an “overweight” rating for the company in a research note on Tuesday, December 16th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Gates Industrial in a report on Monday, December 29th. Wells Fargo & Company started coverage on Gates Industrial in a report on Thursday, November 13th. They set an “equal weight” rating and a $23.00 price objective on the stock. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $31.00 price objective on shares of Gates Industrial in a research report on Friday. Six analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $29.67.

Gates Industrial Stock Up 1.8%

GTES opened at $28.04 on Friday. The firm has a market cap of $7.24 billion, a P/E ratio of 28.90 and a beta of 1.27. The business’s fifty day simple moving average is $23.09 and its 200 day simple moving average is $23.85. Gates Industrial has a 52 week low of $14.70 and a 52 week high of $28.47. The company has a quick ratio of 2.50, a current ratio of 3.37 and a debt-to-equity ratio of 0.61.

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

Institutional Trading of Gates Industrial

Institutional investors and hedge funds have recently made changes to their positions in the company. Empowered Funds LLC acquired a new position in Gates Industrial in the first quarter valued at $381,000. Vanguard Personalized Indexing Management LLC purchased a new position in shares of Gates Industrial in the 2nd quarter worth about $236,000. CWM LLC raised its holdings in shares of Gates Industrial by 2.9% in the 2nd quarter. CWM LLC now owns 57,462 shares of the company’s stock worth $1,323,000 after purchasing an additional 1,642 shares during the period. Yousif Capital Management LLC lifted its stake in shares of Gates Industrial by 2.8% in the 2nd quarter. Yousif Capital Management LLC now owns 89,352 shares of the company’s stock valued at $2,058,000 after purchasing an additional 2,435 shares in the last quarter. Finally, Sequoia Financial Advisors LLC purchased a new stake in shares of Gates Industrial during the 2nd quarter worth about $267,000. 98.50% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting 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.

About Gates Industrial

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.