Rexnord (RXN) Upgraded by Zacks Investment Research to “Strong-Buy”

Rexnord (NYSE:RXN) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research note issued on Tuesday. The firm currently has a $31.00 target price on the industrial products company’s stock. Zacks Investment Research‘s price target would indicate a potential upside of 13.93% from the company’s previous close.

According to Zacks, “In the last three months, shares of Rexnord Corporation have outperformed the industry. In third-quarter fiscal 2018, the company's earnings and sales topped the Zacks Consensus Estimate by 37% and 2%, respectively. For fiscal 2018, Rexnord anticipates gaining from a growing product demand, meaningful buyouts and supply-chain optimization and footprint-repositioning programs. Also, the strengthening global food & beverage, process industries and commercial aerospace end markets will benefit the Process & Motion Control segment. Accelerated demand from nonresidential and residential construction markets of the United States and Canada and water and wastewater infrastructure markets of China and Rest of the World will favor the Water Management segment. Core sales are now anticipated to grow in mid-single digits versus low-to-mid single digits expected earlier.”

RXN has been the subject of several other reports. Bank of America raised Rexnord from a “neutral” rating to a “buy” rating in a research report on Monday, January 8th. KeyCorp lifted their price objective on Rexnord from $30.00 to $33.00 and gave the company an “overweight” rating in a report on Thursday, February 1st. Deutsche Bank set a $33.00 price objective on Rexnord and gave the company a “buy” rating in a report on Friday, January 19th. TheStreet cut Rexnord from a “b-” rating to a “c+” rating in a report on Wednesday, November 15th. Finally, ValuEngine raised Rexnord from a “hold” rating to a “buy” rating in a report on Friday. One analyst has rated the stock with a sell rating, one has assigned a hold rating, six have given a buy rating and one has assigned a strong buy rating to the company. The company has an average rating of “Buy” and an average price target of $30.20.

Shares of Rexnord (NYSE RXN) traded down $0.12 during mid-day trading on Tuesday, reaching $27.21. The company had a trading volume of 509,591 shares, compared to its average volume of 907,664. The company has a market capitalization of $2,991.47, a PE ratio of 20.89, a P/E/G ratio of 2.20 and a beta of 1.77. Rexnord has a 52-week low of $21.51 and a 52-week high of $31.44. The company has a debt-to-equity ratio of 1.05, a quick ratio of 1.58 and a current ratio of 2.49.

Rexnord (NYSE:RXN) last issued its earnings results on Wednesday, January 31st. The industrial products company reported $0.37 EPS for the quarter, topping the consensus estimate of $0.27 by $0.10. The firm had revenue of $492.30 million during the quarter, compared to analysts’ expectations of $479.66 million. Rexnord had a return on equity of 13.05% and a net margin of 8.29%. Rexnord’s quarterly revenue was up 9.0% compared to the same quarter last year. During the same period last year, the business earned $0.25 earnings per share. research analysts anticipate that Rexnord will post 1.31 EPS for the current fiscal year.

Several hedge funds and other institutional investors have recently modified their holdings of RXN. Parametrica Management Ltd bought a new position in shares of Rexnord during the third quarter valued at $212,000. Ameritas Investment Partners Inc. increased its stake in shares of Rexnord by 27.7% in the second quarter. Ameritas Investment Partners Inc. now owns 9,142 shares of the industrial products company’s stock valued at $213,000 after buying an additional 1,981 shares in the last quarter. Teacher Retirement System of Texas acquired a new stake in shares of Rexnord in the third quarter valued at $219,000. Prudential Financial Inc. acquired a new stake in shares of Rexnord in the second quarter valued at $230,000. Finally, Quantitative Systematic Strategies LLC acquired a new stake in shares of Rexnord in the third quarter valued at $288,000.

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About Rexnord

Rexnord Corporation is a multi-platform industrial company. The Company operates through two segments: Process & Motion Control platform, and Water Management platform. The Process & Motion Control platform designs, manufactures, markets and services a range of engineered mechanical components used within systems.

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