Gates Industrial price target raised to $26 from $22 at RBC Capital

RBC Capital raised the firm’s price target on Gates Industrial (GTES) to $26 from $22 and keeps an Outperform rating on the shares. The firm hosted investor meetings with the company CFO, and the messaging was all consistent with the Q3 earnings call, offering visibility into the expected 400bps margin expansion from 80/20, material cost savings, and footprint optimization and productivity, the analyst tells investors in a research note. Datacenter liquid cooling applications with its electronic water pumps and hoses should present an exciting new growth opportunity for Gates Industrial, RBC added.