GTES - Gates Industrial Corp.: Underappreciated Earnings Power

• Gates Corporation has struggled under its debt load post-IPO, but a successful multi-year deleveraging means things are finally looking up.
• With multiple growth opportunities to tap into, particularly in electrification, Gates' long term growth trajectory is bright.
• An accelerated debt paydown and a cleaner balance sheet also present capital deployment optionality.
• While the sponsor overhang is material, the depressed valuation offers investors ample safety margin.

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