Gates Industrial (NYSE:GTES) Stock Rating Upgraded by Wall Street Zen

Gates Industrial (NYSE:GTES) was upgraded by Wall Street Zen from a “buy” rating to a “strong-buy” rating in a report issued on Saturday.

A number of other equities research analysts have also issued reports on GTES. UBS Group reiterated a “buy” rating and issued a $33.00 target price on shares of Gates Industrial in a research note on Friday. Weiss Ratings restated a “hold (c+)” rating on shares of Gates Industrial in a report on Monday, December 29th. Citigroup increased their price objective on shares of Gates Industrial from $27.00 to $33.00 and gave the company a “buy” rating in a research report on Friday. JPMorgan Chase & Co. reduced their target price on shares of Gates Industrial from $33.00 to $32.00 and set an “overweight” rating on the stock in a research report on Tuesday, December 16th. Finally, Robert W. Baird set a $39.00 target price on shares of Gates Industrial in a research note on Friday. Six research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $29.67.

Gates Industrial Stock Performance

Shares of GTES stock opened at $28.04 on Friday. The company has a current ratio of 3.37, a quick ratio of 2.50 and a debt-to-equity ratio of 0.61. The company has a market cap of $7.24 billion, a PE ratio of 28.90 and a beta of 1.27. The company’s fifty day simple moving average is $23.09 and its 200-day simple moving average is $23.85. Gates Industrial has a 52 week low of $14.70 and a 52 week high of $28.47.

Gates Industrial (NYSE:GTES) last announced its quarterly earnings results on Thursday, February 12th. The company reported $0.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.37 by $0.01. Gates Industrial had a return on equity of 10.36% and a net margin of 7.30%.The firm had revenue of $856.20 million during the quarter, compared to the consensus estimate of $853.35 million. During the same period in the prior year, the firm earned $0.36 EPS. The firm’s quarterly revenue was up 3.2% compared to the same quarter last year. Gates Industrial has set its FY 2026 guidance at 1.520-1.680 EPS. As a group, equities research analysts anticipate that Gates Industrial will post 1.36 EPS for the current year.

Institutional Trading of Gates Industrial

Hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. increased its stake in shares of Gates Industrial by 5.0% in the third quarter. Vanguard Group Inc. now owns 26,753,365 shares of the company’s stock worth $664,019,000 after buying an additional 1,281,339 shares during the last quarter. Allspring Global Investments Holdings LLC grew its holdings in Gates Industrial by 5.3% during the 4th quarter. Allspring Global Investments Holdings LLC now owns 14,169,457 shares of the company’s stock worth $312,578,000 after acquiring an additional 717,353 shares in the last quarter. Dimensional Fund Advisors LP grew its holdings in Gates Industrial by 3.7% during the 4th quarter. Dimensional Fund Advisors LP now owns 11,250,875 shares of the company’s stock worth $241,562,000 after acquiring an additional 400,359 shares in the last quarter. JPMorgan Chase & Co. increased its position in shares of Gates Industrial by 98.7% in the 4th quarter. JPMorgan Chase & Co. now owns 8,373,294 shares of the company’s stock worth $179,775,000 after purchasing an additional 4,158,341 shares during the last quarter. Finally, State Street Corp raised its stake in shares of Gates Industrial by 3.0% in the 4th quarter. State Street Corp now owns 7,971,572 shares of the company’s stock valued at $171,150,000 after purchasing an additional 232,447 shares in the last quarter. Institutional investors and hedge funds own 98.50% of the company’s stock.

Key Headlines Impacting Gates Industrial

Here are the key news stories impacting Gates Industrial this week:

• Positive Sentiment: Q4 adjusted EPS beat estimates — Gates reported adjusted EPS of $0.38 vs. the $0.37 consensus, confirming modest improvement in profitability year-over-year. Read More.
• Positive Sentiment: Capital returns and cash generation — Management repurchased approximately $105 million of shares and generated $478.1 million of operating cash flow for 2025, supporting shareholder returns and balance-sheet flexibility. Read More.
• Neutral Sentiment: FY‑2026 guidance essentially in line with consensus — Gates provided an EPS range of $1.520–$1.680 (consensus ~$1.56) and revenue guidance of $3.5B–$3.6B, leaving room for execution risk but not signaling a material reset. Read More.
• Neutral Sentiment: Revenue roughly in line with estimates but soft growth — Q4 sales were $856.2M (in line with estimates) and up just 3.2% YoY, reflecting limited core sales expansion. Read More.
• Negative Sentiment: Underlying demand and GAAP profitability show restraints — core sales growth was modest (0.6% in the quarter, 1.0% for FY), and GAAP net income per diluted share for the quarter was $0.20 versus adjusted $0.38, highlighting one‑time items and ongoing margin sensitivity. Read More.
• Neutral Sentiment: Management provided supporting materials — earnings slide deck and conference-call materials are available for deeper detail on segment trends and the drivers behind guidance. Read More.

About Gates Industrial

Gates Industrial Corporation PLC (NYSE: GTES) is a leading global manufacturer of engineered power transmission belts and fluid power products. The company’s portfolio includes synchronous belts, V-belts, hose assemblies, fittings and hydraulic components designed to support a wide range of industrial and automotive applications. Gates Industrial serves sectors such as agriculture, mining, construction, manufacturing, transportation and consumer markets, offering solutions that improve performance, reliability and efficiency in demanding operating environments.

In its power transmission segment, Gates Industrial produces high-strength belts engineered for precise motion control and minimal maintenance.