GTES - Gates Industrial downgraded to Neutral at Goldman Sachs
2023-06-20 10:18:18 ET
Gates Industrial ( NYSE: GTES ) on Tuesday was downgraded to Neutral from a prior investment rating of Buy by analysts at Goldman Sachs. They said the maker of power-transmission belts and industrial tubing faces slowing demand among its industrial customers.
“We see a challenging cyclical outlook in machinery first-fit markets where building new and used equipment inventories indicate current levels of new equipment production are tracking well ahead of demand,” Jerry Revich, analyst at Goldman Sachs, said in a June 20 report. “We are concerned with the cyclical outlook for many of Gates’ ( GTES ) primary customers across truck, construction and ag equipment in 2023 and 2024.”
Goldman Sachs lowered its price target for Gates ( GTES ) to $14.50 a share from $15.50 a share previously, based on an enterprise value-to-EBITDA multiple of 7.6 times results for 2024. The bank lowered its EBITDA estimate to $807 million from $823 million for 2024, and to $850 million from $865 million for 2025.
Gates's ( GTES ) stock fell as much as 4.8% to $12.42 a share on Tuesday before trimming its loss.
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Gates Industrial downgraded to Neutral at Goldman Sachs