RBC Capital upgraded Gates Industrial to Outperform from Sector Perform with a price target of $22, up from $20. The analyst believes the company’s cost savings and footprint optimization will drive margin upside. The firm likes Gates’ multi-year upcycles in personal mobility, the China auto aftermarket, expansion in India, and chain-to-belt conversion. Consensus estimates are likely underestimating the company’s margin improvement trajectory, the analyst tells investors in a research note.
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