
RRX Stock Forecast & Price Target
RRX Analyst Ratings
Bulls say
Regal Rexnord is expected to see positive growth and improved financial performance under their new CEO, with a projected sales estimate of $240M in 2027 through their new platform ePOD and expansion of their manufacturing capacity. Their AMC segment is expected to see an EBITDA margin of 24-26% by 2024 and there is potential for further growth in the emerging market of humanoid robots. However, potential risks lie in data center orders and the continued importance of their key component, switchgear, beyond 2027.
Bears say
Regal Rexnord is facing risks from sustained customer share loss, unmitigated commodity inflation, and potential weakening in core industrial markets, which could limit revenue growth and impair the company's shares. With a current data center sales expectations and strong debt repayment, the company could achieve a 20x P/E multiple and deliver a potential upside toward $295 per share. However, if there is a decline in demand from residential HVAC or core industrial markets, the company's long-term P/E multiple and EPS forecast of $12.85 could result in a downside risk toward $175 per share. RRX's new CEO Aamir Paul has a proven track record in sales and leadership from his previous roles at Schneider Electric and Dell, which could provide potential growth opportunities for the company. Thus, with a current 'Buy' rating and a $260 price target, the company is well-positioned for potential revenue growth and interest expense savings from deleveraging, while also considering the potential risks in the market.
This aggregate rating is based on analysts' research of Regal Rexnord Corp and is not a guaranteed prediction by Public.com or investment advice.
RRX Analyst Forecast & Price Prediction
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