
Gates Industrial (GTES) Stock Forecast & Price Target
Gates Industrial (GTES) Analyst Ratings
Bulls say
Gates Industrial Corp PLC demonstrates a solid foundation for growth, particularly in its Power Transmission segment, which has shown steady organic sales increases, albeit slightly below estimates, indicating resilience in its core operations. The company's successful launch of over 60 new product platforms has significantly boosted its new product introduction (NPI) metrics, with NPI growth rising from low single digits in 2017 to the mid-to-high teens by 2023. Additionally, the datacenter opportunity, with a growing pipeline approaching $150 million, alongside anticipated improvements in pricing realizations for the second half of 2025, positions the company favorably for future revenue growth.
Bears say
Gates Industrial Corp's recent financial performance reflects a negative outlook primarily due to a decline in organic sales across both its operating segments; specifically, the Power Transmission segment experienced a core growth reduction of -1.3% year-over-year, attributed to weak industrial OEM demand and lowered commercial truck production forecasts. Additionally, the company's 2Q25 organic sales fell by -0.6%, which was below both internal estimates and broader market expectations, while the Fluid Power segment also faced a decline of -2.5% year-over-year, compounding the overall revenue challenges. The company has encountered significant operational deleverage, with volume expectations falling approximately 600 basis points short over the past two years, leading to heightened margin pressures amid unfavorable market conditions.
This aggregate rating is based on analysts' research of Gates Industrial and is not a guaranteed prediction by Public.com or investment advice.
Gates Industrial (GTES) Analyst Forecast & Price Prediction
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