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

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

Several other research firms have also weighed in on GTES. Morgan Stanley upped their target price on Gates Industrial from $25.00 to $27.00 and gave the company an “equal weight” rating in a report on Wednesday, March 11th. Citigroup upped their target price on Gates Industrial from $27.00 to $33.00 and gave the company a “buy” rating in a report on Friday, February 13th. UBS Group reissued a “buy” rating and issued a $33.00 target price on shares of Gates Industrial in a report on Friday, February 13th. Weiss Ratings lowered Gates Industrial from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, April 1st. Finally, Robert W. Baird set a $39.00 target price on Gates Industrial in a report on Friday, February 13th. Six investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Gates Industrial currently has a consensus rating of “Moderate Buy” and an average target price of $30.36.

Gates Industrial Stock Up 0.2%

Gates Industrial stock opened at $24.10 on Friday. The company has a debt-to-equity ratio of 0.61, a quick ratio of 2.66 and a current ratio of 3.67. The firm has a market capitalization of $6.14 billion, a price-to-earnings ratio of 25.10 and a beta of 1.28. Gates Industrial has a fifty-two week low of $19.26 and a fifty-two week high of $28.47. The stock’s fifty day moving average is $24.57 and its two-hundred day moving average is $23.73.

Gates Industrial (NYSE:GTES) last posted its earnings results on Friday, May 1st. The company reported $0.35 earnings per share for the quarter, beating the consensus estimate of $0.32 by $0.03. The company had revenue of $851.10 million for the quarter, compared to analyst estimates of $859.72 million. Gates Industrial had a return on equity of 10.00% and a net margin of 7.23%.Gates Industrial’s revenue was up .4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.36 earnings per share. Gates Industrial has set its FY 2026 guidance at 1.520-1.680 EPS. Analysts predict that Gates Industrial will post 1.53 EPS for the current fiscal year.

Institutional Trading of Gates Industrial

Large investors have recently made changes to their positions in the stock. True Wealth Design LLC boosted its stake in shares of Gates Industrial by 133.2% during the third quarter. True Wealth Design LLC now owns 1,166 shares of the company’s stock valued at $29,000 after acquiring an additional 666 shares during the last quarter. Los Angeles Capital Management LLC acquired a new stake in shares of Gates Industrial during the fourth quarter valued at $26,000. Transamerica Financial Advisors LLC boosted its stake in shares of Gates Industrial by 51.9% during the fourth quarter. Transamerica Financial Advisors LLC now owns 1,577 shares of the company’s stock valued at $34,000 after acquiring an additional 539 shares during the last quarter. Fifth Third Bancorp boosted its stake in shares of Gates Industrial by 46.3% during the first quarter. Fifth Third Bancorp now owns 1,624 shares of the company’s stock valued at $37,000 after acquiring an additional 514 shares during the last quarter. Finally, SJS Investment Consulting Inc. grew its position in shares of Gates Industrial by 5,123.7% in the third quarter. SJS Investment Consulting Inc. now owns 1,985 shares of the company’s stock valued at $49,000 after purchasing an additional 1,947 shares during the period. Institutional investors and hedge funds own 98.50% of the company’s stock.

Gates Industrial News Roundup

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

• Positive Sentiment: Acquisition announced — Gates agreed to buy The Timken Company’s belts business, expanding its power-transmission footprint and management says the deal should improve adjusted EBITDA margins in the Industrial Motion segment. The strategic fit and expected margin accretion are positive for medium-term profit growth. Timken to Sell Belts Business to Gates
• Positive Sentiment: EPS beat — Gates reported $0.35 EPS for Q1, above the ~$0.32 consensus, showing underlying profitability and providing some support despite revenue pressure. That beat helps justify the multiple while investors assess topline trends. Gates Industrial (GTES) Q1 Earnings Surpass Estimates
• Neutral Sentiment: Guidance roughly in line but cautious on revenue — FY‑2026 EPS was guided to $1.52–$1.68 (near Street expectations) while revenue guidance of $3.5–$3.6B sits slightly below consensus. That keeps the story intact but raises questions about near-term top-line momentum. Gates Industrial Reports First-Quarter 2026 Results
• Neutral Sentiment: Conference call / management commentary — The earnings call transcript provides more context on reasons for core revenue weakness and integration plans for the Timken belts assets; investors should watch execution details. Gates Industrial (GTES) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Top-line softness and core revenue decline — Q1 net sales were $851.1M (up 0.4% YoY) but core revenue fell ~2.9% year-over-year and sales missed analyst estimates (~$859.7M). Sluggish organic growth and the revenue miss likely drove the negative stock reaction. Gates Industrial (GTES) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates

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.